Monday, September 30, 2013

Collateral Mortgages

Td Collateral Charge /Collateral Mortgage A collateral mortgage is a security agreement registered against a borrower’s property that allows them to secure the initial loan and possibly future loans.

  • With a collateral charge mortgage, TD mortgage customers can switch from a mortgage loan to a home equity line of credit (HELOC) in the future without incurring any new registration fees.
  • Where they choose to register the collateral charge for a higher amount than their current loan agreement (to a maximum of 125% of the current property value), they may be able to reuse the existing collateral charge for future borrowings and avoid incurring additional costs of registering a new charge on the property. 

From Td Economics
  • This week TD Economics released our latest Quarterly Economic Forecast for Canada (attached) which outlines how Canadian households continue to drive growth, while exports and business investment are stuck in the backseat.
  • A rebound in July retail sales confirmed the resiliency of the Canadian consumer. The retail data rounds out our expectation for July GDP, which is expected to recover after a decline in June.
  • On the other hand, the CFIB Business Barometer for August showed that the mood among small busi­nesses remains quite flat. Stronger business investment is required to help kick start Canada’s economy, but businesses need to become more confident about the future before that takes hold

Romy Alegria
Manager, Residential Mortgages
Line of Credits, Refinances
Toronto Core
C. 416.278.2540

P. 416.614.5446

Having a collateral mortgage permits you to use part as a credit line in addition to fixed financing.  This is good but in a declining value condo market a few percentage points, advance to value, could result in your spending your equity.

Be ever mindful of market conditions

Monday, September 23, 2013

Cash Back on Closing is still around

I thought this was gone from the Toronto Real Estate Market;  You cannot use this as part of your closing disbursements but it is there for certain buyers who are doing a 95% down and getting the 5% back after closing.  

You need to have and front all the deposits, expenses and fees related to your purchase  for 60 - 90 days prior to the closing.  

Cash back mortgage product
Did you know that Cash Back is available on 2 - 10 year term up to a system maximum of $35,000. Cash Back amounts set as follows:

 System Maximum
  2 years
  3 years
  4 years
  5 years
  6 years
  7 years
 10 years

Money is deposited into clients account the next day after activation and might be spend as clients wish; maybe they want to make small renovations, buy new appliances, pay out some debts, pre pay the mortgage or simply have some extra money in their account. 

Rates: My best rate: 2.99% for 3y fixed; Variable 2.6% (see attachment)

From Td Economics:

·         The housing market has proven more resilient in 2013 than we had anticipated. The outperformance has been particularly notable on the price side.
·         The recent strength in Canadian housing needs to be kept in perspective. Sales are still well below historical peak levels. Four rounds of insured mortgage rule tightening have worked to temper home sales, which are still 11% below the peak reached in late 2009.
·         After Bank of Canada Governor Stephen Poloz gave an economic pep talk on Wednesday, U.S. Federal Reserve Chair Ben Bernanke killed the buzz by not beginning the widely expected “taper” of its asset purchases

Romy Alegria | Manager, MMS 
P: 416.278.2540 | F: 1-866.222.5708

Monday, September 16, 2013

Home Equity Line of Credit - HELOC

HELOC - Customer Level Pricing (CLP)

  • CLP is being introduced to provide customers with a competitive HELOC (Home equity line of credit) variable interest rate.
  • The CLP Rate is generated by evaluating a number of attributes that incorporate customer relationship, credit worthiness and HELOC application details such as appraised property value, collateral charge position, Equity Lending, credit worthiness etc.
  • If client is not satisfied with the CLP Rate, we still can submit a HELOC Pricing Exception Request.
  • Heloc is a good option for an equity take out for future investments. Send your inquiries now. 

From TD Economics
Housing starts fell to 180K units on an annualized basis in August, a 6.6% decrease from the month prior. Yet, the six-month moving average remained steady at 187K units. 

  • Home prices rose for the sixth consecutive month as the 11-city Teranet House Price Index (HPI) increased by 0.6% month-over-month in August. 
  •  Household leverage, as measured by household credit market debt to disposable income, increased to 163.4% in Q2, up from 162.1% in Q1. The showing snapped the streak of two consecutive quarterly declines, but in level terms, the ratio has stabilized over the past year. 
  • The National Household Survey (NHS) release confirmed what we had previously observed only anecdotally – one-quarter of Canadians devote more than 30% of their total income to shelter costs, surpassing the threshold at which housing becomes unaffordable. 

Romy Alegria | Manager, MMS | TD Canada Trust
P: 416.278.2540 | F: 1-866.222.5708

Monday, September 9, 2013

Business for Self Mortgage Guidelines

Here’s a refresher when dealing with “buyers” that are business for self:

ü  Maximum LTV (loan to value) 90%
ü  Self employed for more than 2 years but less than 3 years
ü  No previous bankruptcy
ü  No tax arrears as per most recent Notice of Assessment (NOA)
ü  Minimum 3 years on Credit Bureau with 3 trade lines.
ü  Beacon Score Requirements (defined by the lowest score from all borrowers average score):   LTV </= 90% - minimum beacon score of 650
ü  Maximum TDS 42% - based on stated income.
** Latest statistics from Bank of Canada indicates that the total mortgage amount is $879 billion in the year to July.

** In its interest rate announcement, the Bank of Canada held the overnight at 1.00% and reiterated its forward looking language. The Bank acknowledged that the rotation in economic growth drivers has not been as quick as many had hoped – a theme that was reinforced by data releases this week (From Td Economics)

Romy Alegria is a Mobile Mortgage Specialist with TD Bank who specializes in Residential and Commercial Real Property Mortgages in the Greater Toronto Area.

Romy Alegria | Manager, MMS | TD Canada Trust
P: 416.278.2540 | F: 1-866.222.5708