Monday, December 9, 2013

Purchase Plus Improvement Mortgage

Purchase plus improvement
This product helps qualified home buyers to make renovations, upgrading, changes, etc. to make their new home just right for them. Extra funds are provided after taking possession and presenting receipts or the work done. No added insurance premiums.  Depending on the renovation costs CMHC/ GE may determine an extra appraisal or not required.

Borrower Qualification:
  • Existing requirements related to income, down payment and credit worthiness apply
  • Gifted down payments from immediate family member can be used, provided they are properly verified, non-repayable and all other characteristics of the borrower are acceptable
  • Government grants may be considered if pre-approved by Genworth
From TD Economics:

·         The Bank of Canada kept the overnight rate constant at 1.00% this week, in a communiqué which was interpreted as more dovish than the last. Markets reacted swiftly and the Canadian dollar plunged to a three-year low.
·         Canada’s trade balance tipped into surplus in October, as imports fell further than exports. The trade surplus was a razor thin $75 million, up from a $303 million deficit in September.
·         Employment was solid in November, advancing by 22,000 positions, while the unemployment rate held firm at 6.9%. So far this year, employment growth has averaged 13,400 per month, down from 25,400 over the same period in 2012.

Romy Alegria
Manager, Mobile Mortgage Specialist
T:416 278 2540

This could also apply for seniors and their desire to Age in Place rather than moving to a Retirement Home. A Mortgage that could be used to cover Improvements could solve many problems like lowered kitchen cabinets that are wheel chair accessible, chair lifts and ramps, elevators that aid mobility and roll in bathrooms / showers.

What do you need to be done in the home that will give you another 10 or 15 years of being on your own?

Monday, December 2, 2013

New To Canada 2014 update

Mortgage news:
Risk fee plus 10 basis points extra on the low-ratio bulk insurance will be charge to CMHC and Genworth by the federal Government starting January 2014.  Apparently there will be no impact on the cost of buying a house or the cost of mortgage funding

Product ”NEW TO CANADA”, qualified homebuyers who have immigrated or relocated to Canada within the last 5 years are eligible under Genworth's/CMHC New to Canada program to purchase a property with as little as a 5% down payment
Borrower Qualification:
  • Must have immigrated or relocated to Canada within the last 60 months
  • 3 months minimum full time employment in Canada (borrowers being transferred under a corporate relocation program are exempt)
  • Must have a valid work permit or obtained landed immigrant status
  • For 95% LTV, down payment must be from own resources. For LTV's less than 95%, the remainder may be gifted from an immediate family member or from a corporate subsidy
  • All debts held outside of the country must be included in the total debt servicing ratio(Rental income earned outside of Canada is to be excluded from the GDS/TDS calculation)
  • Guarantors are not permitted
  • Foreign Diplomats who do not pay tax in Canada are ineligible for this program
Rates:  2.99% 3Y FIXED MORTGAGE

From TD Economics

The Canadian economy turned out a decent performance in the third quarter of the year. Real GDP grew by 2.7% annualized – the fastest pace of growth in over two years.
• Some of the strength in the quarter can be attributed to temporary factors, including a rebound in oil and gas production following supply disruptions during the first half of this year and a sharp inventory build.
• Still, there were some encouraging underlying details in the GDP report released today. Household and business spending moderately supported economic activity. While net trade was a drag on growth, improvements in exports towards the end of the third quarter spell good news for economic growth in the fourth quarter.
• The Q3 performance is unlikely to move the Bank of Canada’s monetary policy stance. We expect the
Bank of Canada will be on hold at least until the end of 2015