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.
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.
If you are shopping for a mortgage, you have the option to go directly to a bank or enlist the help of a professional Port Moody mortgage broker. But, which should you choose? While a bank can provide you with the select products offered by its institution, a mortgage broker can provide more choice – with access to hundreds of mortgage products available on the market.
Here are some advantages of using a Port Moody Mortgage Broker:
When you work with a Port Moody Mortgage Broker, we will discuss and compare mortgage rates, design a mortgage that is suited to your unique needs, and ultimately, create a mortgage that will work for you. Our job is to make you feel comfortable throughout the entire process. You will have peace of mind knowing that you’re getting the very best mortgage option.
Our clients can expect to receive the best rates with fast, friendly, professional service and a mortgage package that is tailored to your unique needs. We are completely independent – our job is to work with you and for you to find the best mortgage products. 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 Moody 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 mortgage renewal process from your Trusted Mortgage Knowledge Professional
The mortgage renewal process is something that everyone with a mortgage needs to be fully aware of. If you have a mortgage agreement, then you are required to receive a renewal statement from your lender at least 21 days before the end of your current mortgage term.
Did you know that many people simply sign on the dotted line, without shopping around for a better rate? A Manulife survey found that almost two out of three Canadians surveyed stayed with their current provider and didn’t even try to negotiate.
I understand that people are busy; however, it is important to understand how much a percentage point can affect the total amount you pay over the lifetime of your term. Just a few tenths of a percentage point could mean thousands of dollars less in your pocket.
If you are renewing your mortgage, here are a few things to keep in mind before you sign the renewal document.
It is never a good idea to wait until you receive the renewal notice from your lender to begin shopping around for a better rate. The banks send these notices so close to the renewal date to deter people from shopping around. However, being proactive can help you to save a significant amount of money. I recommend beginning to shop around four months prior to your renewal.
Always think of the posted rate as the opening offer in a negotiation. Banks often use the posted rate to provide a value proposition to their clients. It is a better idea to shop around. If you only get rates from one financial institution, you may be paying a premium compared to other available rates in the market. A trusted mortgage knowledge professional will be able to help you negotiate with your current lender. It is important to do some legwork with a mortgage broker to ensure that you are getting access to the lowest interest rate possible.
A broker is an independent licensed mortgage specialist who negotiates with a variety of lenders to get their clients the best possible rate. Mortgage brokers can offer a better rate than the bank due to their access to multiple lenders. A Bank of Canada survey found that using a mortgage broker resulted in many Canadian’s getting a lower rate than what was offered by their bank.
As with any agreement, always read the small print before you sign. Make sure the mortgage product you choose offers other options such as the ability to pay extra on your mortgage and clearly defines any penalties, should you decide to break your mortgage agreement early.
If you don’t take the time to be proactive, then your mortgage will be automatically renewed after the 21-day period passes.
If you have any questions or if you want to begin shopping around well before your renewal notice arrives, get in contact with your local Port Coquitlam Trusted Mortgage Knowledge Professional, Milka Lukacevic of the TMK team.
The benefits of your own personal mortgage consultant from your Trusted Mortgage Knowledge Professional
So, you’re thinking about buying a home. Should you get your mortgage through a local Port Coquitlam mortgage broker or your bank? In the past, it used to be that if you wanted to do something substantial, like buy a home, your best course of action was to turn to your bank. While this remains an option, banks are no longer the sole option available to Canadians. A local, trusted mortgage broker may be a better choice when it comes to buying that new home.
A mortgage broker is an independent licensed mortgage specialist. When using a mortgage broker, essentially, you are hiring someone to act on your behalf. It is important to remember that mortgage brokers are not actual lenders themselves. Rather, they work with a variety of lenders and mortgage rates.
One of the main benefits of using a mortgage broker is that they have access to, and knowledge of the entire mortgage market. They understand the market, follow the trends, and know which institutions offer which mortgage products. Mortgage brokers can also access exclusive deals that are not available to the open market and can negotiate a better interest rate or lower application fees from the lender.
Mortgage brokers will assist you in the application process, from pre-approval to home appraisal. Most importantly, they can save you time. An experienced broker can identify the most appropriate lender for your specific circumstances and they will know which mortgage will be the most appropriate. To help further relieve your stress, they also handle the hassle of paperwork and interaction and negotiation with lenders.
Advantages of using a mortgage broker:
When you set up a meeting with one of Canada’s major banks for a mortgage, they will usually have you sit down with a loan officer. One of the main disadvantages of using your bank is that they can only access their own rates and products, even if there are better rates available in the market. As a result, you will always receive a higher interest rate from your bank.
For most of us, our mortgage will be the biggest financial decision we ever make. Working with a trusted Port Coquitlam mortgage broker is highly recommended.
It is important to understand how much a percentage point here and there can affect the total amount you pay over the lifetime of your mortgage. Just a few tenths of a percentage point could mean thousands of dollars less in your pocket. Understanding how to save yourself a percentage point could mean additional family trips, a maxed our RESP for your children or speeding up that retirement date by a couple of years.
The way we see it, the banks just can’t beat what we have to offer! If you want to experience the difference of a mortgage broker, set up a meeting with your local Port Coquitlam Trusted Mortgage Knowledge Professional, Milka Lukacevic of the TMK Team.
Are you considering purchasing a rental property? In this blog post, we will be discussing everything you will need to know before becoming a landlord.
First things first: can you afford this kind of commitment? You will need to ensure you have a steady income and a sufficient savings fund. All of your high-interest debts will need to be paid off and you should be on track to meeting your retirement savings goals.
After carefully considering your overall financial picture, you will want to map out all of the costs associated with purchasing a rental property. It is important to factor in:
Purchasing a property as an investor rather than an owner-occupant typically requires a larger down payment. You will need to have a 20-25% down payment available to apply to the purchase of the rental property.
As a homeowner with an existing mortgage, you will need to apply for a new mortgage on the rental property. An investment property mortgage requires specialty financing. This customized mortgage loan is slightly different from a traditional second mortgage. An experienced mortgage broker can help you find the right mortgage for your situation, and at a great rate.
Will you be able to afford the mortgage on the rental property if you are without a tenant for a month or two? Ensure you have enough saved to cover your two mortgage payments, recurring expenses, and routine maintenance and repairs.
When it comes to purchasing a rental property, it helps to find a realtor who’s interested in establishing a relationship, owns rental properties themselves, and specializes in the buying and selling of investment properties. Your local Port Coquitlam realtor can give you good advice about the neighbourhoods that are popular with renters in the community.
Another responsibility of a landlord is finding and evaluating tenants. Taking the time to evaluate potential clients will make a big difference on your experience as a landlord. Your goal is likely to find the perfect tenants. You know the kind? The renters who take immaculate care of their home. The ones who decorate for the holidays and take pride in their rental as if it was their own home. If you find renters like this, do everything you can to hold on to them. These kinds of tenants tend to require fewer repairs and will leave far less wear and tear behind when they eventually move out.
Another option is to use a property management company. They will likely use a professional tenant screening service to check credit reports, references, and perform a criminal background check on perspective tenants.
The extra work upfront is worth it in the long run. If you’re interested in obtaining a rental property mortgage, contact your local Port Coquitlam Trusted Mortgage Knowledge Professional, Milka Lukacevic of the Mortgage Centre TMK Team.
Mortgage Tips from your Trusted Mortgage Knowledge Professional
Paying down your mortgage faster is one of those suggestions that financial advisors love to make to their clients. And while many Canadian’s dream about the financial freedom of being completely debt-free, most are unaware of the simple strategies they can utilize to shed years off their mortgage.
In this blog post, I will highlight four strategies you can implement into your life to help pay down your mortgage faster.
Are you currently making monthly payments 12 times per year? Instead, try speeding up the process with an accelerated bi-weekly payment plan. With this plan, you end up paying 26 bi-weekly payments per year. So in effect, you are paying the equivalent of 13 payments per year. Prior to setting up accelerated bi-weekly payments, confirm that there are no pre-payment penalties.
A pain-free way to help your debt disappear faster is to round up your payments. For example, if your accelerated bi-weekly payments are $848, consider rounding the payment up to $900. The additional $52 will make a significant difference over time, and chances are, you will barely notice a difference in your monthly budget.
Most closed mortgages will allow borrowers to make an extra payment each year. This additional payment can be 10%, 15% or 20% of the original principal in each calendar year, without penalty.
So you’ve purchased a house, have a mortgage and have begun making monthly payments. At this stage, it can be easy to fall into a routine as the payments come out of your accounts automatically. Don’t fall into this routine. As a homeowner, you need to stay up-to-date with interest rate changes and the new options available to you.
While paying off your debt early will result in less interest paid over the lifetime of your loan, it is not always the best option for every homeowner. If you fall into one of these three categories, then the interest you would save on your mortgage would not be as beneficial to you as addressing your other financial issues first.
It is very easy to virtually play around with the various payment scenarios available to you. Most financial institutions, banks, and brokers have online mortgage calculators. If you are using an online calculator, make sure it is from a Canadian source. American mortgage calculators are calculated differently and will provide you with inaccurate information.
Armed with this information, I hope these tips will help you pay off your debt sooner. If you have any questions, feel free to contact your local Port Coquitlam Trusted Mortgage Knowledge Professional, Milka Lukacevic of The TMK Team.