Chances are, the COVID-19 pandemic has already affected your day-to-day life. As uncertainty casts its shadow, businesses around the world are scrambling to adapt and make sure they can continue to operate. Client-facing businesses such as banks and financial institutions have made major policy changes in order to ensure that Canadian home-owners are fully supported during this crisis. Ranging from mortgage deferrals to credit relief, Canada’s banks are pulling out all the stops to support our local communities and businesses.
Do you have a mortgage at the moment? Curious about what some of the big players are doing to help out borrowers like yourself? Read on below to find out!
“In response to the rapidly-evolving COVID-19, TD announced additional proactive measures to further support our customers, colleagues, and communities. Alongside Canada’s six largest banks, TD has announced a commitment to work with personal and small business banking customers on a case-by-case basis to provide flexible solutions to help them manage through challenges such as pay disruption due to COVID-19; childcare disruption due to school closures; or those facing illness from COVID-19. This support will include up to a six-month payment deferral for mortgages, and the opportunity for relief on other credit products. If you are directly impacted by COVID-19 and as a result are facing financial challenges, let us know by reaching out to us at 1-888-720-0075. We are prepared to help you find a solution to meet your needs. You’ll have a lot on your mind, and we want to be there for you.”
“During these challenging and uncertain times, we wish to confirm that First National has a program in place to address payment difficulties caused by the current COVID-19 pandemic. We appreciate that there may be requests to self-isolate, there may be a pause to regular employment or other work-related matters resulting from COVID-19 that may impact you. Our financial relief program is customized to each individual’s circumstances and could include deferral of payments on mortgages for up to six months. If you have any questions, you can reach us at 1.866.557.5509 or by email at firstname.lastname@example.org. We commit to working with our customers on a case-by-case basis.”
“Scotiabank is here to help our customers navigate this uncertain time. We have announced additional measures to reduce and delay the transmission of COVID-19 and to provide financial relief to those who need it most.
As every situation is different, we are committed to trying to work with all our customers on a case-by-case basis to help understand, and hopefully alleviate, financial hardships that may be experienced as a result of COVID-19. Our support measures are flexible, including payment deferrals for mortgages and relief on credit products for those who qualify.
Should you have any existing Scotiabank customers contact you for guidance, please recommend they call 1-800-4-SCOTIA (1-800-472-6842). While we may experience slower than usual response times due to a high volume of calls, please rest assured that Scotiabank is committed to providing our mutual customers with the best service we can.”
“We join Canadians across the country in expressing our concern for those directly impacted by COVID-19. We understand that some borrowers may be experiencing financial hardship and we’re committed to working with them through these difficult times.
Under the terms of their RFA mortgage, borrowers may have options available to them, including skipping or deferring payments. We encourage our clients to contact us at the first sign of difficulty to discuss their individual situation. COVID-19 is impacting all of us, in one way or another. Now more than ever, we must stand together to navigate this situation. Please know—we’re here to help.
Wishing you and your family good health.”
“This support will include up to a six-month payment deferral for mortgages, and the opportunity for relief on other credit products.
Individual Canadians or business owners facing hardship are encouraged to contact their bank directly to discuss options that could be available to them.
These measures are an important first step and underscore the resilience of Canada’s financial system and the strength of our major banks. Banks will monitor evolving economic conditions and consider other measures if necessary.
Canada’s banks have a long history of standing by Canadians through challenging times and this commitment will continue throughout this crisis and beyond. To start, find out about how you can skip a payment by contacting your branch and more information will follow. What does RBC’s relief plan look like? Further details will follow in the days to come. For more information, please refer to rbc.com.“
“We’re not providing official payment holidays at this time. However, no NSF fees will be charged.
If clients cannot make the payment then just let it bounce. Client will not be penalized and no foreclosure action will be taken at this time.
Please be patient when making a call to the lenders as I am sure they will be receiving an influx of calls in the coming day and weeks.
If you’re looking for an expert opinion you can trust during uncertain times, I can help. Whether you are considering buying a home, refinancing, switching lenders or need help planning for COVID-19, you can expect the best rates with fast, friendly, professional service and a mortgage package that is tailored to suit your personal goals.
Have you ever been in this situation? You have been searching for a new home and you have finally found one that you like. It’s in your approved price range and all it needs is a few improvements. Some new laminate flooring, update the kitchen and bathroom, a coat of paint and it will be good as new.
The only problem is that once you calculate the total amount you’ll need for the down payment, taxes, and legal fees, you realize you won’t have enough money for the renovations. Luckily, there is a mortgage for that!
Whether it’s a new kitchen, bathroom or windows, this mortgage provides you with the flexibility
to purchase a home and include the cost of the
renovations in the price.
And I can help you get approved for one!
The Purchase Plus Improvement Mortgage is a great option for many people who find themselves in this situation. They are able to complete the upgrades right away and live in the home they really want.
The guidelines for the Purchase Plus Improvements Mortgage states that:
This mortgage is available at the best rates and may help to make it easier for you to decide which home is best for you and your family.
If you think this type of mortgage would be perfect for yourself or someone you know, then contact Milka Lukacevic from The Mortgage Centre TMK Team, today!
Mortgage Information from your Trusted Mortgage Knowledge Professionalt
The high real estate prices in the Greater Vancouver Area and new mortgage rules designed to crackdown on risky lending have made it harder than ever for first-time home buyers to get into the market. The new Stress Test that came into effect in early 2018 means that many first-time home buyers who were previously approved for a high-ratio mortgage are now completely shut out of the market.
Desperate to move out of their parent’s homes and get into the housing market, cash-strapped millennials are accepting financial help from their parents in the form of gifted down payments. Did you know that financial gifts from parents have doubled since 2000? They are up from 7% in 2000 to 15% in 2016. At the same time, young adults still living at home with their parents is up 13.3% since 2001, and young adults living with a spouse or partner is down 14.6%.
If you’re in the fortunate position to help your children buy a home (and help yourself reclaim your home), you have a few options. One of them being to provide a gifted down payment.
A gifted down payment, also known as a living inheritance, is a financial gift from the buyer’s immediate family member that will go towards the down payment. All that is required for documentation is a signed Gift Letter from the family member which states that the money does not have to be re-paid, and a snapshot of the child’s bank account showing that the gifted funds have been transferred.
As a baby boomer, you’re in the middle of an unprecedented wealth transfer of cash, property, and investment holdings. If you’re in the position to not need the money coming to you, then that windfall will just result in a big tax hit. However, if you were to gift it to your children, it is no longer a tax burden for you or them as there is no gift tax in Canada. In the long term, your children will pay less in estate tax when you pass away.
Of course, the best part of gifting your children money to buy a home will be when you see the fruits of your labour – a better start in life for your children and their young family.
Do you know a first-time home buyer looking to get into the local Port Coquitlam real estate market? Refer them to Milka Lukacevic of The Mortgage Centre TMK Team for mortgage pre-approval and real estate market guidance.
Saving for a Down Payment from your Trusted Mortgage Knowledge Professional
A down payment is the amount of money that you are able to put towards the purchase of a home. The down payment amount is subtracted from the purchase price of your home.
If you’re thinking about buying a new home, one of the most difficult things right now will be saving for a down payment. How much do you really need to be able to afford the home of your dreams?
In this article, I will discuss the benefits of saving for a:
If you’ve experienced the housing market before, then you may remember a time when the banks offered mortgage options like the ‘zero down payment’. Options like these were no longer offered after the 2008 recession.
As a result, if you’re looking to purchase a home through a federally-regulated lender, you will be required to have a minimum 5% down payment.
Most major credit unions still do offer zero down mortgages, but the biggest draw back is the extremely high interest rate.
If you save less than 20% for a down payment, you will be required to purchase default insurance. This insurance is a pricey addition to your regular mortgage payments. If you save 20% or more, you will be exempt from this burden.
If you find yourself somewhere between 0% and 20%, you may want to look into different areas to purchase. Whatever the situation, it is always a good idea to have the professionals look into it with you to ensure you’re making the best decision.
If 20% is good, then 35% must be even better! Simply put, the more money you’re able to put towards a down payment, the less you will pay on interest in the long run. Not only will you have less to pay off, but you will also qualify for better interest rates.
Of course, not everyone will be able to afford to put down 20-35%. Although there are benefits, a down payment of this size is not required to get into the housing market. If you are a first-time home buyer, there are options available for you as well.
If you have any questions about saving for a down payment, then contact Milka Lukacevic from the Mortgage Centre TMK Team.
Mortgage Pre-Approval from your Trusted Mortgage Knowledge Professional
Any mortgage professional will tell you that your house hunt shouldn’t start with a meeting with a realtor. Rather, it should start with a meeting with a mortgage broker.
Mortgage brokers are independent licensed mortgage specialists who act on your behalf and communicate with a variety of lenders to negotiate the best interest rates for you.
There are many advantages to getting Mortgage Pre-Approval Port Coquitlam. In this article, I will highlight three advantages.
You will know your budget ahead of time
Once you complete the mortgage pre-approval step, you’re ready to move on to the next stage of your home buying journey. If you know your borrowing power ahead of time, you can save time by focusing on the homes that are in your price range.
You’re seen as a serious buyer
With your mortgage pre-approval in hand, you can be confident that you will be seen as a serious buyer by the realtor and seller. You will also have a stronger negotiating position as they know you can easily turn your attention to other properties.
It’s a smart move
It’s easy to get mortgage pre-approval. Once you are approved, you won’t have to worry about rising interest rates for 120 days. During this time, you can take the time you need to find the ideal home. Not to mention, there’s no cost to you and you’re not obligated in any way.
You will need to provide supplemental documentation proving your income, the source(s) of your down payment, and your assets and liabilities. The lenders will also want to look at your credit score.
Your Port Coquitlam mortgage broker will let you know exactly what you will need to bring to your appointment.
Contact Milka Lukacevic of The Mortgage Centre TMK Team to schedule your Mortgage Pre-Approval Port Coquitlam appointment, today!
I can’t believe that 2018 is almost 2 months in. It seems like 2017 went by so quickly. I have enjoyed another fabulous year and I have YOU my clients to thank.
I had another extraordinary year in my personal and professional life! We traveled to Hawaii, Mexico, Phoenix, Dubai, and a 2-month summer vacation in Montenegro, Europe where our son got married. My husband and I welcomed our first grandchild, a girl, in January named Mila, and then a grandson in May named Branson. Oh how time flies……and every moment is precious.
My life as a mortgage broker got so busy in 2017. We continued to experience some all time lows with fixed mortgage rates. Some as low as 2.49% on a 5-year fixed rate. Many of you have been fortunate enough to have taken advantage of those historical low rates.
With summer behind us, the change and shift in increased interest rates didn’t stop the market. The market has continued the momentum from 2016….and new rules haven’t stopped the market. Condo and townhouses continue to see a major growth in sales year after year. Our economy is looking good. We have a steadily increasing population, all time low unemployment, and we still have low interest rates. Well, maybe not as low as what we have been accustomed to, but they still are low.
The year ended with Bank of Canada increasing its prime lending rate twice in a short period of time, followed by the Banks increasing their Prime. Of course, the common question to your mortgage broker is, “is the variable still a good product for me, or should we look at locking in?” I am in a variable rate mortgage , and I still haven’t locked in. If you have questions about your variable, please reach out and we can discuss.
New rules once again started in January 2018. Qualifying for a mortgage just got a little tougher, but it hasn’t slowed down the market. Basically everyone must qualify either at the Bank of Canada qualifying rate (currently 5.14%) or at a rate of 2% greater then the contract rate you are getting (ie: if your getting a 5 year fixed at 3.49% then you must qualify at 5.49%)
Thank you all for being a part of my professional journey and success! And remember I am always here to answer any questions. Now, pass my name along as YOUR referrals are the foundation of my growth and success!
If you don’t know about the role a mortgage broker can play in the process of getting you a mortgage, you could be leaving thousands of dollars on the table. While a bank can provide you with the select products they offer, a Coquitlam Mortgage Broker can provide you with more choice. This is because they have access to hundreds of different mortgage products available on the market.
Here are five reasons why you should enlist the help of a Coquitlam Mortgage Broker:
As mentioned above, mortgage brokers have access to many different rates and lenders. These rates may not be advertised widely, but are significantly lower than those advertised by the large banks or credit unions.
Many lenders’ rates and mortgages can only be accessed through a mortgage broker. Choosing to get a mortgage through a bank can mean choosing harsher prepayment penalties for breaking your mortgage as well as a higher interest rate.
As mortgage brokers have access to more lenders, they’re able to find a lender and design a mortgage that is suited to your unique needs. Ultimately, our goal is to create a mortgage that will work for you. You will have peace of mind knowing that you’re getting the best mortgage.
Mortgage brokers are completely independent – our job is to work with you and for you. We operate on commission and are paid by the lenders who grant you your mortgage. As mortgage brokers depend on referrals, it’s in their best interest to serve you the best they can.
Do you usually have difficulty setting aside time to go into your bank branch (especially during bank hours)? A Coquitlam mortgage broker can come to you and discuss all of the mortgage options available. You can take as long as you need to ask questions and you have the opportunity to develop a real relationship with your broker.
As with any service, you should always do your due diligence in order to find the right Coquitlam Mortgage Broker for you. Get recommendations from friends and family, look at online reviews, and don’t be afraid to ask a borrower for references.
Milka started working in the banking world in 1994. She became an independent mortgage broker in 2006 and opened her own successful and locally recognized brokerage in 2009. She has been a resident of Port Coquitlam for the past 22 years with her husband, 3 children, and dog, Sparky
Whether you are purchasing your first home, refinancing, renewing, switching lenders or purchasing a revenue/vacation property, a Coquitlam Mortgage Broker can provide you with professional unbiased advice.
Milka Lukacevic and the TMK Team is a member of The Mortgage Centre – one of Canada’s most established mortgage broker networks.
So, you’re thinking about buying a home. Should you get your mortgage through a local Port Coquitlam Mortgage Broker or your bank? While a bank can provide you with the select products offered by their institution, a mortgage broker can provide you with more choice – as they have access to hundreds of mortgage products available on the market.
Advantages of using a Port Coquitlam Mortgage Broker:
Our clients can expect to receive the best rates with fast, friendly, professional service and a mortgage package that is tailored to suit your personal needs. We are completely independent – our job is to work with you and for you to find the best mortgage products exclusively for you. Best of all, the services of a mortgage broker are free!
Milka started working in the banking world in 1994. She became an independent mortgage broker in 2006 and opened her own successful and locally recognized brokerage in 2009. She has been a resident of Port Coquitlam for the past 22 years with her husband, 3 children, and dog, Sparky.
Whether you are purchasing your first home, refinancing, renewing, switching lenders or purchasing a revenue/vacation property, a Port Coquitlam Mortgage Broker can provide you with professional unbiased advice.
Milka Lukacevic and the TMK Team is a member of The Mortgage Centre – one of Canada’s most established mortgage broker networks.
Types of Mortgages from your Trusted Mortgage Knowledge Professional
Purchasing a new home can be a stressful experience. On top of that, there are enough mortgage options in the marketplace to make your head spin. When it comes time, how will you know which one is right for you? Here are the most common mortgage options that you will come across, and why they may (or may not) be right for you.
As long as you have a 20 percent down payment, you will be able to apply for a conventional mortgage. These have a low loan-to-value ratio, meaning that the amount of the loan is low, relative to the value of the property.
This is a mortgage option where the borrower is contributing a down payment of less than 20 percent. These mortgages must have Mortgage Default Insurance through the Canada Mortgage and Housing Corporation (CMHC).
An open mortgage allows you the flexibility to make a lump sum prepayment or accelerated payments at any time before the end of the amortization period, without penalty. Although this option has greater flexibility, it tends to have a slightly higher interest rate.
Variable Rate Mortgage
These mortgages are initially set up like a standard loan, based on the current interest rate. The mortgage is reviewed at set intervals and if the prime rate has changed, either changing the size of the payment or the length of the amortization period, the lender will then alter the repayment plan.
Capped Rate Mortgage
This mortgage option offers a variable rate that is capped by the lending institution. Rates may fluctuate in the market, but the lender will offer a guarantee that you will never pay an interest rate above their cap.
Fixed Rate Mortgage
A fixed rate mortgage features an interest rate that is fixed for a set period of time. It’s easier to manage a budget as your payments won’t change during the term. Not only does this bring peace of mind, but you will also benefit from a lower rate than that of a variable rate mortgage.
With this option, you can move from a variable to a fixed rate, or a shorter to a longer term, at any time without a penalty. This is a good option to consider if you want to stick with a variable rate for the moment, but expect rates to rise in the near future.
A reverse mortgage provides you with the opportunity to transfer the equity in your home into cash value, if you have a need to do so. You will not have to worry about selling or vacating your home in the process. It has been touted as a good option for home owners who are nearing retirement and who have considerable equity in their home.
So, as you can see, there are many mortgage options available to you. If you’re feeling overwhelmed by all of this information, set up an appointment to discuss all of these options and more with a Trusted Mortgage Knowledge Professional.
The transition from living at home or renting, to homeownership has many obstacles for millennials, today. In fact, many people may feel like homeownership is a dream that is out of reach for them in today’s current real estate market.
But all hope is not lost! By asking yourself these four practical questions, you too can be on your way to buying your first home.
As a first-time home buyer, it is important to shop within your means. Even if you qualify for a sizable mortgage, there’s no rule that says you have to use the full amount. At this stage, your goal should be to start building equity. If you want a property but you can’t afford it, then you shouldn’t buy it.
If you’re seriously thinking abut buying a home, then you have probably started budgeting for your down payment and monthly mortgage payment. But don’t forget to budget for your property tax, insurance, closing costs, and utilities. Not to mention, your living expenses once you’ve moved into your new home.
In Canada, most mortgage professionals will advise you to make at least a 20% down payment on your property to avoid paying homeowner insurance. However, this is not always possible, especially if you don’t want to delay your first real estate investment. A 5% down payment is the minimum amount you must put down.
Shopping around for a mortgage can be a complicated and confusing process. It used to be that if you wanted to finance a mortgage, you went right to your bank. These days, more and more Canadian’s are turning to a mortgage broker to help them find the mortgage product that is right for them. A mortgage broker will compare rates from the major banks as well as non-traditional lenders. They will then match you with the best interest rate and lending terms available on the market.
Contact a local Trusted Mortgage Knowledge Professional today – Milka Lukacevic and the Mortgage Centre TMK Team.