Factors That Determine Mortgage Rates in Canada
For many years now, mortgage rates have remained at historically low levels in Canada, and most analysts expect them to increase progressively over the course of 2011 and 2012. Given the significant impact that mortgage rates have on the cost of homeownership and the housing market in general, this article focuses on the key factors that explain mortgage rate fluctuations in Canada.
First, it is important to note that the factors that determine variable mortgage rates are different than those that determine fixed mortgage rates.
Variable Mortgage Rates
Variable mortgage rates are essentially determined by commercial banks’ prime rates1, which are mainly influenced by the Bank of Canada’s key interest rate. Thus, an increase in the key interest rate almost automatically leads to an equivalent increase in variable mortgage rates. The Bank of Canada raises its key interest rate when it wants to fight inflation2.
Fixed Mortgage Rates
Fixed rate mortgage loans are primarily influenced by the yield on Canadian government bonds (bond yields) of corresponding maturity. Chart 1 shows the relationship between five-year mortgage rates3 and the yield on five-year Canadian government bonds. Notice that the correlation between the two is almost perfect. This is because bond rates represent the benchmark for financial institutions’ cost of funds4. The difference between the two rates (mortgage rates and bond yields) represents the yield that financial institutions require to lend the funds out on the mortgage market5.
In order to understand mortgage interest rate fluctuations, we need to understand the factors that influence Canadian government bond yields.
Factors Influencing Bond Yields
There are many factors that influence bond yields. Bonds issued by the Canadian government are among the most liquid and least risky assets, since they are guaranteed by the Canadian government. A significant volume of bonds are traded daily in the market. The supply and demand game in the bond market determines their price, which, in turn, determines their yield6. This yield can be seen as the minimum rate of return required by investors before investing their capital for a determined period. It is influenced by many factors, notably inflationary expectations, exchange rate risk7, and the return on other financial assets.
Here is an example, taken from current events, that helps us to understand the recent movement in bond yields. In the spring of 2010, international investors fled from volatile stock markets, as well as from government bonds issued by certain troubled European countries caught in the midst of a sovereign debt crisis. Thus, many investors flocked to the safety of the Canadian government-bond market, which was considered less risky due to Canada’s economic and financial situation. The increase in demand for Canadian government bonds pushed their price up, which necessarily lowered their yield. The shaded area on Chart 1 shows the decrease in yield on five-year Canadian government bonds that took place during this period. We can see that five-year mortgage rates followed the same trend, decreasing from 6.25 per cent in April to 5.39 per cent in August 2010.
In conclusion, mortgage rates in Canada are determined by many factors that are directly related to domestic economic activity and decisions made by Canadian financial authorities. They are also influenced by foreign economic conditions and investors’ perception of Canada’s financial and economic health.
Source:A word from the Economist~ By Paul Cardinal~Manager,Market Analysis Feb,2011 edition.
Here is the pdf file to down load if interested.
http://www.fciq.ca/pdf/mot_economiste/en/me_022011_a.pdf
Friday, April 1, 2011
Friday, March 11, 2011
Monday, January 17th, 2011 New mortgage rules miss debt management target
http://www.mbabc.ca/?p=505
Source:MBABC
Mortgage brokers say tightening rules on unsecured consumer debt, not mortgage lending rules is the answer to lowering household debt
January 17, 2011 (Vancouver) – Finance Minister Flaherty’s announcement this morning of tighter mortgage rules continues to emphasize mortgage debt as the culprit for record levels of household debt. However, these changes affect high ratio mortgages only, a very small part of the mortgage market. The real issue says the Mortgage Brokers Association of BC (MBABC) is growing consumer lines of credit, consumer loans, car leases and credit cards, and the unsecured lending practices of these lenders, not what homeowners are doing with secured mortgage debt. The new rules will primarily affect new and younger homebuyers, a demographic which does not typically shoulder high consumer debt.
Mortgage lending is not creating the problem of record levels of household debt, consumer debt is, according to the MBABC. By the time consumers need to refinance their mortgage, consumer debt already exists. A mortgage refinance can often be a solution to a homeowner’s debt issue, and these new changes reduce the effectiveness of this solution. It does not, however, resolve the main issue of consumer debt, which started the problem to begin with.
“Household debt loads are directly related to these unsecured debt factors, not mortgage lending”, says MBABC President Joanne Vickery. “Further tightening of mortgage rules is not necessarily the right answer. Consumers need to have the discipline to change their financial habits and to not take on debt that they cannot afford.”
“Consolidating household debt and rolling it into a mortgage is a smart option for an initial solution”, says Vickery “provided that any savings are then used to pay down the mortgage or invested into a retirement savings vehicle. Consumers cannot, however, continue to use their home as an ATM; they must change their habits on acquiring consumer debt.”
Vickery advises homeowners and those looking to buy a home to contact a qualified MBABC mortgage broker for assistance with determining home affordability as well as long-term debt planning and debt management.
About MBABC
MBABC represents member brokers in BC and serves as the province’s industry voice with government, regulators and media. The Association strongly supports and facilitates the highest levels of ethical and professional standards and co-operation in the mortgage industry. Each member must abide by the Association’s strict Code of Ethics. MBABC actively supports its members through professional development and networking opportunities. It supports government policy that encourages small business and home ownership, and is committed to raising consumer awareness about the mortgage broker industry. MBABC is governed by an elected Board of Directors and an Executive Director.
Source:MBABC
Mortgage brokers say tightening rules on unsecured consumer debt, not mortgage lending rules is the answer to lowering household debt
January 17, 2011 (Vancouver) – Finance Minister Flaherty’s announcement this morning of tighter mortgage rules continues to emphasize mortgage debt as the culprit for record levels of household debt. However, these changes affect high ratio mortgages only, a very small part of the mortgage market. The real issue says the Mortgage Brokers Association of BC (MBABC) is growing consumer lines of credit, consumer loans, car leases and credit cards, and the unsecured lending practices of these lenders, not what homeowners are doing with secured mortgage debt. The new rules will primarily affect new and younger homebuyers, a demographic which does not typically shoulder high consumer debt.
Mortgage lending is not creating the problem of record levels of household debt, consumer debt is, according to the MBABC. By the time consumers need to refinance their mortgage, consumer debt already exists. A mortgage refinance can often be a solution to a homeowner’s debt issue, and these new changes reduce the effectiveness of this solution. It does not, however, resolve the main issue of consumer debt, which started the problem to begin with.
“Household debt loads are directly related to these unsecured debt factors, not mortgage lending”, says MBABC President Joanne Vickery. “Further tightening of mortgage rules is not necessarily the right answer. Consumers need to have the discipline to change their financial habits and to not take on debt that they cannot afford.”
“Consolidating household debt and rolling it into a mortgage is a smart option for an initial solution”, says Vickery “provided that any savings are then used to pay down the mortgage or invested into a retirement savings vehicle. Consumers cannot, however, continue to use their home as an ATM; they must change their habits on acquiring consumer debt.”
Vickery advises homeowners and those looking to buy a home to contact a qualified MBABC mortgage broker for assistance with determining home affordability as well as long-term debt planning and debt management.
About MBABC
MBABC represents member brokers in BC and serves as the province’s industry voice with government, regulators and media. The Association strongly supports and facilitates the highest levels of ethical and professional standards and co-operation in the mortgage industry. Each member must abide by the Association’s strict Code of Ethics. MBABC actively supports its members through professional development and networking opportunities. It supports government policy that encourages small business and home ownership, and is committed to raising consumer awareness about the mortgage broker industry. MBABC is governed by an elected Board of Directors and an Executive Director.
Thursday, March 10, 2011
New Mortgage Rules are fast approaching...Here are some changes to look for on March 18th 2011
Below are the new regulations:
Source ~ CBC
~Maximum amortization is decreasing down from 35 years to 30 years.
~Maximum Equity Take out is decreasing from 90% to 85%.
~Government insurance backing on "home equity lines of credit"(HELOCs), has been removed.
FAQ'S
Q: Does the mortgage , either a purchase or refinance , have to close by March 18th ?
A: No, it has to be a firm contract and approved before March 18th, however it can close after.
Q: I have a pre-approval but I haven’t found a home before March 18th, how does this affect me?
A: it has to be a firm contract in place before the 18th, however it can close after the 18th.
Q: I have a 40 year amortization. At renewal will I get a 30 year amortization or 35 year?
A: You will get a 35 year amortization in most cases. **"Depending on the lenders underwriting guidelines at time of renewal."
Q: I’m in a 35 year amortization and would like to refinance/debt consolidate my mortgage?
A: if we get it approved before March 18th 35 year will be available, after the 18th it will be 30 year.
Q: I’m thinking of porting my mortgage over to a new home purchase, what happens?
A: Each lender seems to have a different policy and/or on case by case scenario's, if you are thinking of selling and porting your mortgage please let me know and I would be happy to assist you.
Please note that until you apply to a lender, they have the last word and base their final decisions on each individual application.
**Effective dates may vary depending on the lender, who may exercise to adopt the new mortgage rules prior to the March 18/11 date.
--
Here is the link http://www.cbc.ca/news/business/story/2011/01/17/flaherty-mortgage-changes.html
Please feel free to contact me with any mortgage related questions you may have.
At your service 7 days week. 9am-10pm
604-818-2581
Source ~ CBC
~Maximum amortization is decreasing down from 35 years to 30 years.
~Maximum Equity Take out is decreasing from 90% to 85%.
~Government insurance backing on "home equity lines of credit"(HELOCs), has been removed.
FAQ'S
Q: Does the mortgage , either a purchase or refinance , have to close by March 18th ?
A: No, it has to be a firm contract and approved before March 18th, however it can close after.
Q: I have a pre-approval but I haven’t found a home before March 18th, how does this affect me?
A: it has to be a firm contract in place before the 18th, however it can close after the 18th.
Q: I have a 40 year amortization. At renewal will I get a 30 year amortization or 35 year?
A: You will get a 35 year amortization in most cases. **"Depending on the lenders underwriting guidelines at time of renewal."
Q: I’m in a 35 year amortization and would like to refinance/debt consolidate my mortgage?
A: if we get it approved before March 18th 35 year will be available, after the 18th it will be 30 year.
Q: I’m thinking of porting my mortgage over to a new home purchase, what happens?
A: Each lender seems to have a different policy and/or on case by case scenario's, if you are thinking of selling and porting your mortgage please let me know and I would be happy to assist you.
Please note that until you apply to a lender, they have the last word and base their final decisions on each individual application.
**Effective dates may vary depending on the lender, who may exercise to adopt the new mortgage rules prior to the March 18/11 date.
--
Here is the link http://www.cbc.ca/news/business/story/2011/01/17/flaherty-mortgage-changes.html
Please feel free to contact me with any mortgage related questions you may have.
At your service 7 days week. 9am-10pm
604-818-2581
Wednesday, February 23, 2011
Foreclosure and how it works.
Foreclosure is an intimidating and unnerving experience for homeowners who are about to lose their homes. If you are facing foreclosure, there are still options available to help you with the process. Let me give you an understanding of what it is and how it works. E&OE
Call me at 604-818-2581
What is Foreclosure?
Foreclosure is a legal action taken by the lender when a mortgagor stops making their mortgage payments. Foreclosure allows the lender to take over the property for the purpose of selling the property. This enables the lender to recuperate outstanding mortgage debt on the property. The lender must first obtain permission from the court prior to proceeding.
What happens if you make a late payment OR miss a mortgage payment?
You will not automatically lose your home. Lenders typically do not want to foreclose if they don’t have to because it is an expensive and time-consuming process. Foreclosure proceeding does not start until 2-3 months of payment arrears. Normally a lender will send out a letter requesting payment. If the mortgagor does not respond, the lender will start to foreclose and sue the mortgagor at the same time.
In cases like a short – term challenges, such a temporary layoff, you may be able to negotiate to make smaller payment for a short period of time, and have the shortfall added to the total mortgage amount of your mortgage. Or you may be able to make smaller payment and then make larger catch up payments once you are back on track.
Most lenders want to work with the mortgagor to bring payments current and up to date rather than starting expensive foreclosure proceedings in court. There are laws in place to help you if you have a good chance of paying the arrears and if you are trying to get your finances in order. Only in the worst-case scenario may you lose your home and any equity you might have built up in it.
When the lender starts foreclosure, what happens first?
The lender applies to the courts for an “ORDER NISI”, which is the first step of foreclosure proceeding. The lender must register with the Supreme Court registry where the mortgagor’s home is located, unless the mortgagor agrees otherwise.
You will receive a "petition for foreclosure", which is the lender's application to the court. At the same time the lender may also sue you for any short fall on the mortgage amount still owed to the bank.
You must file a document called an “Appearance” within seven days of getting the petition.
Here’s how and why.
You can get an "Appearance form" from the court registry. You must file the Appearance at the court address shown on the petition. Once you do this, no one can take any steps in the foreclosure without notifying you. If you don’t file an Appearance, the foreclosure will go ahead without you, and you won’t be able to protect yourself. After you file the Appearance, you will receive a document called a “Notice of Hearing,” this document tells you when the lender will ask the judge for the order nisi to start the foreclosure.
What happens at the hearing?
The court will give the lender an order nisi, but in most cases, it will also give you time to “redeem” the mortgage by paying the full amount you owe, plus interest, costs and taxes. This time is called the “redemption period” and it’s typically 6 months. But sometimes the lender will ask the court for a shorter redemption period. The court can make an order to sell your house at any time, including at the "order nisi" stage.
It is a good idea to attend the court hearing is to ask the judge for as much time as possible to get the money to pay off the mortgage or sell the house. If you need more time, you can ask for an extension. If you ask for a long redemption period or an extension, the court will want to know what you have done to pay off the mortgage and what chance you have of paying the mortgage or selling the house on your own or through your own real estate agent. It is recommended you use a lawyer in this case because a lawyer can advise you on your options, including possible options on where to get refinancing.
When the redemption period ends, the court can give the lender a final order of foreclosure – “order absolute” - Or, the lender can ask the court for the right to have a lender selected real estate agent to list your house for sale. If there are other people or companies with a charge against your house, besides the lender who started to foreclose, they may ask for the right to sell your house. If the court gives the lender or anyone else the right to sell your house, it gives them “conduct of sale.” If this happens, you cannot sell the house yourself. If anyone asks the court for conduct of sale for your house, you should ask the court to give you exclusive conduct instead. This means that only you are in charge of selling it. Or you can ask the court to give you at least joint conduct with the other person or company, so you have some control.
There are two things to consider during the redemption period
1. You can pay off the lender that started the foreclosure. To get the money for this, you can try to borrow from another lender or a relative, at a lower interest rate or over a longer repayment period. That would let you pay off the first mortgage and lower your monthly payments.
2. Your can sell the house, preferably using your own real estate agent. You may then choose the Realtor you trust the most or feel most comfortable with. If you sell the house, you can use the money from the sale, first to pay any tax you owe, and then to pay the mortgage and other charges registered against the title, including court costs. If there’s any equity(money) left over, it is yours to keep. But if the money from selling your house doesn’t completely pay off all of the lenders, you may have to pay them the difference. Meanwhile, if the lender or anyone else with a charge against your house gets an offer to buy your house, they can apply to court for an order authorizing that sale.
What if you have no equity in your home?
If you owe more than what the house is worth, you will probably want to get out of the situation with as little expense and trouble as possible. It is recommended that you take action instead of ignoring the problem. You may want to work with the lender to minimize costs by agreeing to the foreclosure. Normally, you would only do this if the lender will give you a full release from your mortgage, meaning you won’t owe the lender any more money. If the lender won’t agree to this, you can just let the foreclosure proceedings go ahead and use the time as a rent-free period to get your finances back in order. If any other people or companies with debts registered against your house are not paid from the money from selling your house in the foreclosure, you will still have to deal with them. Otherwise, they can sue you for any money you still owe them.
The lender can apply to the court for an “order absolute”
The final order for foreclosure is known as an “order absolute,” and it comes after the redemption period ends. If the lender applies for an order absolute and the court grants it, the house then belongs to the lender and you have to leave it. You lose all rights to the house. You will no longer owe the lender any money, but if anyone registered a debt against your house after the mortgage, you’ll still owe that money. In exceptional cases, you can apply to the court for relief from losing your house if you can pay the balance in full. Then the court can order the lender to transfer the house back to you.
If the court calls for an "order absolute", you owe nothing more to the lender
When the lender sells your house after getting an order absolute, but doesn’t get enough money from the sale to pay off the mortgage, you don’t have to pay the difference. But typically the lenders do not ask the court for an order absolute. Instead, they will usually sue you when they start to foreclose and ask the court for an order to sell your house to pay off the loan. If the money from selling your home doesn’t completely pay off the mortgage loan, the lender can try to collect the difference from you.
What happens when there is a second mortgage and/or other charges registered against the property?
Any mortgages or charges registered before the lender’s mortgage continue and are still valid. But any that were registered after the lender’s mortgage are canceled and the holders of those charges lose their security. For example, if you have two mortgages on your house, and the first lender forecloses, the second lender will have to pay off the first lender or lose its security. Then the second lender would have to try to get you to pay its loss.
Summary
A mortgage is a contract to repay a loan, secured with a charge on land. It’s registered against your property in the Land Title Office. If you fail to pay the mortgage, for example, by falling behind in your mortgage payments, the lender may start to foreclose. Then if you can’t pay the mortgage loan in full, either by selling your house or in some other way, the lender can take your property or sell it to pay off the loan.
If you receive a foreclosure petition, get legal advice. It doesn’t cost much to have a first meeting with a lawyer. E&OE
Ellie Beaulieu
604-818-2581
Call me at 604-818-2581
What is Foreclosure?
Foreclosure is a legal action taken by the lender when a mortgagor stops making their mortgage payments. Foreclosure allows the lender to take over the property for the purpose of selling the property. This enables the lender to recuperate outstanding mortgage debt on the property. The lender must first obtain permission from the court prior to proceeding.
What happens if you make a late payment OR miss a mortgage payment?
You will not automatically lose your home. Lenders typically do not want to foreclose if they don’t have to because it is an expensive and time-consuming process. Foreclosure proceeding does not start until 2-3 months of payment arrears. Normally a lender will send out a letter requesting payment. If the mortgagor does not respond, the lender will start to foreclose and sue the mortgagor at the same time.
In cases like a short – term challenges, such a temporary layoff, you may be able to negotiate to make smaller payment for a short period of time, and have the shortfall added to the total mortgage amount of your mortgage. Or you may be able to make smaller payment and then make larger catch up payments once you are back on track.
Most lenders want to work with the mortgagor to bring payments current and up to date rather than starting expensive foreclosure proceedings in court. There are laws in place to help you if you have a good chance of paying the arrears and if you are trying to get your finances in order. Only in the worst-case scenario may you lose your home and any equity you might have built up in it.
When the lender starts foreclosure, what happens first?
The lender applies to the courts for an “ORDER NISI”, which is the first step of foreclosure proceeding. The lender must register with the Supreme Court registry where the mortgagor’s home is located, unless the mortgagor agrees otherwise.
You will receive a "petition for foreclosure", which is the lender's application to the court. At the same time the lender may also sue you for any short fall on the mortgage amount still owed to the bank.
You must file a document called an “Appearance” within seven days of getting the petition.
Here’s how and why.
You can get an "Appearance form" from the court registry. You must file the Appearance at the court address shown on the petition. Once you do this, no one can take any steps in the foreclosure without notifying you. If you don’t file an Appearance, the foreclosure will go ahead without you, and you won’t be able to protect yourself. After you file the Appearance, you will receive a document called a “Notice of Hearing,” this document tells you when the lender will ask the judge for the order nisi to start the foreclosure.
What happens at the hearing?
The court will give the lender an order nisi, but in most cases, it will also give you time to “redeem” the mortgage by paying the full amount you owe, plus interest, costs and taxes. This time is called the “redemption period” and it’s typically 6 months. But sometimes the lender will ask the court for a shorter redemption period. The court can make an order to sell your house at any time, including at the "order nisi" stage.
It is a good idea to attend the court hearing is to ask the judge for as much time as possible to get the money to pay off the mortgage or sell the house. If you need more time, you can ask for an extension. If you ask for a long redemption period or an extension, the court will want to know what you have done to pay off the mortgage and what chance you have of paying the mortgage or selling the house on your own or through your own real estate agent. It is recommended you use a lawyer in this case because a lawyer can advise you on your options, including possible options on where to get refinancing.
When the redemption period ends, the court can give the lender a final order of foreclosure – “order absolute” - Or, the lender can ask the court for the right to have a lender selected real estate agent to list your house for sale. If there are other people or companies with a charge against your house, besides the lender who started to foreclose, they may ask for the right to sell your house. If the court gives the lender or anyone else the right to sell your house, it gives them “conduct of sale.” If this happens, you cannot sell the house yourself. If anyone asks the court for conduct of sale for your house, you should ask the court to give you exclusive conduct instead. This means that only you are in charge of selling it. Or you can ask the court to give you at least joint conduct with the other person or company, so you have some control.
There are two things to consider during the redemption period
1. You can pay off the lender that started the foreclosure. To get the money for this, you can try to borrow from another lender or a relative, at a lower interest rate or over a longer repayment period. That would let you pay off the first mortgage and lower your monthly payments.
2. Your can sell the house, preferably using your own real estate agent. You may then choose the Realtor you trust the most or feel most comfortable with. If you sell the house, you can use the money from the sale, first to pay any tax you owe, and then to pay the mortgage and other charges registered against the title, including court costs. If there’s any equity(money) left over, it is yours to keep. But if the money from selling your house doesn’t completely pay off all of the lenders, you may have to pay them the difference. Meanwhile, if the lender or anyone else with a charge against your house gets an offer to buy your house, they can apply to court for an order authorizing that sale.
What if you have no equity in your home?
If you owe more than what the house is worth, you will probably want to get out of the situation with as little expense and trouble as possible. It is recommended that you take action instead of ignoring the problem. You may want to work with the lender to minimize costs by agreeing to the foreclosure. Normally, you would only do this if the lender will give you a full release from your mortgage, meaning you won’t owe the lender any more money. If the lender won’t agree to this, you can just let the foreclosure proceedings go ahead and use the time as a rent-free period to get your finances back in order. If any other people or companies with debts registered against your house are not paid from the money from selling your house in the foreclosure, you will still have to deal with them. Otherwise, they can sue you for any money you still owe them.
The lender can apply to the court for an “order absolute”
The final order for foreclosure is known as an “order absolute,” and it comes after the redemption period ends. If the lender applies for an order absolute and the court grants it, the house then belongs to the lender and you have to leave it. You lose all rights to the house. You will no longer owe the lender any money, but if anyone registered a debt against your house after the mortgage, you’ll still owe that money. In exceptional cases, you can apply to the court for relief from losing your house if you can pay the balance in full. Then the court can order the lender to transfer the house back to you.
If the court calls for an "order absolute", you owe nothing more to the lender
When the lender sells your house after getting an order absolute, but doesn’t get enough money from the sale to pay off the mortgage, you don’t have to pay the difference. But typically the lenders do not ask the court for an order absolute. Instead, they will usually sue you when they start to foreclose and ask the court for an order to sell your house to pay off the loan. If the money from selling your home doesn’t completely pay off the mortgage loan, the lender can try to collect the difference from you.
What happens when there is a second mortgage and/or other charges registered against the property?
Any mortgages or charges registered before the lender’s mortgage continue and are still valid. But any that were registered after the lender’s mortgage are canceled and the holders of those charges lose their security. For example, if you have two mortgages on your house, and the first lender forecloses, the second lender will have to pay off the first lender or lose its security. Then the second lender would have to try to get you to pay its loss.
Summary
A mortgage is a contract to repay a loan, secured with a charge on land. It’s registered against your property in the Land Title Office. If you fail to pay the mortgage, for example, by falling behind in your mortgage payments, the lender may start to foreclose. Then if you can’t pay the mortgage loan in full, either by selling your house or in some other way, the lender can take your property or sell it to pay off the loan.
If you receive a foreclosure petition, get legal advice. It doesn’t cost much to have a first meeting with a lawyer. E&OE
Ellie Beaulieu
604-818-2581
Thursday, February 17, 2011
My Specialty~ Sub-Prime Market
My Specialty~ The Sub-Prime Market
B Lending is also known as a sub-prime lending for people who have trouble getting a home mortgage because the loan request does not fit the conventional lender guidelines.
A sub-prime mortgage can offer financing with less stringent requirements to qualify. The trade off will be some
what higher interest rates and/or fees, and the maximum loan amount may be limited to a lower loan to value.
A sub-prime mortgage is usually made by a lender who allows non-conforming conditions, such as low credit scores,excessive debt,collections,bankruptcy, or even a foreclosure.
*Hard to Prove Income ~ No income documentation is required to qualify. Reasonable down payment required.
*Excessive Debt ~ Sub-prime mortgage guidelines allow for higher debt ratios, where conventional lenders would decline
a loan for too much debt.
*Derogatory Credit ~ Flexible underwriting on a sub-prime mortgage allows for a low credit scores,collection accounts, and other credit problems.
* Bankruptcy or Foreclosure. Extreme bad credit, including a bankruptcy or foreclosures,can be offset with a compensation factors like more equity and/or higher interest rate.
Whether you have perfect credit, or you have experienced some financial bumps along the way, I am certain I have the loan for you!
Call today for great rates/terms and great service!
Ellie 604-818-2581
B Lending is also known as a sub-prime lending for people who have trouble getting a home mortgage because the loan request does not fit the conventional lender guidelines.
A sub-prime mortgage can offer financing with less stringent requirements to qualify. The trade off will be some
what higher interest rates and/or fees, and the maximum loan amount may be limited to a lower loan to value.
A sub-prime mortgage is usually made by a lender who allows non-conforming conditions, such as low credit scores,excessive debt,collections,bankruptcy, or even a foreclosure.
*Hard to Prove Income ~ No income documentation is required to qualify. Reasonable down payment required.
*Excessive Debt ~ Sub-prime mortgage guidelines allow for higher debt ratios, where conventional lenders would decline
a loan for too much debt.
*Derogatory Credit ~ Flexible underwriting on a sub-prime mortgage allows for a low credit scores,collection accounts, and other credit problems.
* Bankruptcy or Foreclosure. Extreme bad credit, including a bankruptcy or foreclosures,can be offset with a compensation factors like more equity and/or higher interest rate.
Whether you have perfect credit, or you have experienced some financial bumps along the way, I am certain I have the loan for you!
Call today for great rates/terms and great service!
Ellie 604-818-2581
Tuesday, December 7, 2010
Sunday, October 24, 2010
Self Employed and E.I insurance benefits..Is it a good idea?
Interesting article on unemployment insurance for the self employed that came into effect earlier this year. I myself have been debating the options for sometime now.
This article gives you a real understanding on how it works.
http://www.cbc.ca/money/smallbusiness/story/2010/08/24/f-small-business-ei-benefits.html
This article gives you a real understanding on how it works.
http://www.cbc.ca/money/smallbusiness/story/2010/08/24/f-small-business-ei-benefits.html
Subscribe to:
Posts (Atom)