Summer Sizzle Update - Toronto Mortgage Specials

June Sunrise in Toronto

Mortgage Best rate: 2.7% 4y fixed.  Variable 2.45%

Td Offers: $500 to offset fees associated with switching or refinancing and/or to rebate the In-house registration (IHR) fee or solicitor/notary fee (SOL) up to $500 for any new HELOC with an specific drawdown.

Td collateral mortgage: a refresher

The Collateral Charge is the security that the bank has in exchange for lending you the money set out in the Mortgage loan Agreement (MLA).  It is registered against the real estate you are either buying or refinancing.   You may have decided to have your Collateral Charge registered for more than the amount of money you are actually borrowing at this time.   You’ll notice that the interest rate in the Mortgage Loan Agreement is different from the interest rate on the Collateral Charge. The MLA sets out the specific terms and conditions of your loan. The Collateral Charge secures your loan and is registered at TD Prime Rate + 10%. This is the maximum rate of interest for which TD Canada Trust is secured. As you’ll see, this rate can give you greater flexibility and cost savings in the future.

Having a Mortgage Loan Agreement and a Collateral Charge can be useful if :

·         you ever want to change your loan if you wanted to switch from a mortgage loan to a home equity line of credit in the future, you could reuse the existing Collateral Charge as security for the new line of credit without incurring any new registration fees.

·         you have registered the Collateral Charge for a higher amount than your current loan agreement, then if you want to borrow a higher amount in the future, you may be able to reuse the existing Collateral Charge, subject to credit approval.

·         You could also save money at that time by not incurring the cost of registration fees for a new collateral charge on the property.

The Bank's All-Purpose Collateral Land Mortgage may be used to secure all present and future indebtedness and liability of the customer (the "Mortgagor") to the Bank. Such indebtedness and liability may be evidenced by loan agreements, promissory notes, Visa Cardholder Agreements, overdrafts, guarantees etc. The Bank's regular forms contain the clauses necessary to safeguard the Bank in the operation of an account after the Mortgage has been taken.

From Td Economics:

• Both the Bank of Canada and OECD highlighted stretched home prices and elevated household debt as a key vulnerability to the Canadian economy in two separate reports.

• Housing data released this week pointed to a moderation in housing activity. The Teranet Home Price In­dex showed a deceleration in annual home price growth to 5.1% y/y in May, from 5.5% in the prior month. meanwhile, on a trend basis, housing starts have averaged 184,000 units over the last year, a pace that is consistent with underlying economic fundamentals.

• The Wynne government took a majority in Ontario’s election this week, bringing political stability to the province. Even with this victory out of the way, the Government still has some major challenges ahead. Today’s manufacturing data were yet another reminder Ontario is still facing international competitive is­sues.

Romy Alegria

Manager, Mobile Mortgage Specialist

Toronto,

T:416 278 2540

F:1-866-222-5708

W: http://mms.tdcanadatrust.com/romy.alegria/

Insured Second Home Borrowing available

TD will continue to offer: Insured Second home and Insured Business for self however approval will be done through Genworth.  If you recall, effective May 30, CMHC has discontinued their Second Home and Self-Employed without Standard Income Confirmation products. In addition, changes limit customers to one CMHC insured mortgage on an owner-occupied residential property at a time.  (for additional info  http://www.cmhc-schl.gc.ca/en/hoficlincl/moloin/rean/rean_047.cfm)

I'm so proud !!!J  For the second time in a row TD has been named the #1 brand in Canada by Interbrand, the world’s leading brand consultancy. We proudly beat out our competition among the Canadian financial institutions as well as iconic brands such as Tim Hortons, Canadian Tire and Lululemon. 

Contact Romy Alegria today at 416 278 2540
Toronto GTA and the Surrounding 905.

Lowest Rate 1.99% Mortgage

The Best Mortgage to have is No Mortgage at all.  Romy's Mortgage Minute 5.2014



The offering of 1.99% Mortgage is enticing but is very strict to qualify for. There are penalties to exit early, should you need to or your circumstances change.

Why not meet, in the comfort of your residence and everything can be explained to you.

Romy Alegria
416 278 2540

Personal Service Always wins out

Everyone has a unique situation. Their circumstances are different.

O’Leary Mortgages is No More … Canada’s most outspoken capitalist has pulled the plug on brokering. After a little over a year in the business, Kevin O’Leary’s mortgage operation has closed. <http://www.canadianmortgagetrends.com/.a/6a00d8341c74cb53ef01a3fcec0ee6970b-pi>  O’Leary’s model was to make mortgages “simple”… As we all know in the mortgage business, however, terms, legal disclosures and lender commitments are anything but simple. (MBN) Don’t trust your client somebody you don’t trust…
 From Td Economics
• Shockwaves were sent by the sudden and track loss of former Finance Minister Jim Flaherty, who was a key architect of Canada’s economic outperformance in recent years.
• Housing starts fell to 156,000 annualized units in March, down from 190,000 in the month prior. On a three-month moving average (175,000 units), housing starts have moved more in line with a pace of construction that is consistent with both our forecast for housing starts this year, and underlying economic fundamentals (like job gains and population growth).
• In the Bank of Canada outlook survey released this week, businesses pointed to a depreciation in the Canadian dollar and improving economic conditions in the U.S., as key reasons for improved sentiment in the first three  months of this year

While the concept of O'Leary Mortgages is great; there is no one size fits all program with your mortgage. Each lending opportunity requires personal input and attention.

Call Romy Alegria today at 416 278 2540 

CMHC changes are Modest

Mortgage rates: went down last week, best offer is 2,97 for 4 year fixed rate or an amazing 2.55% for 5y variable rate. (see attachment)

Mortgage news: as you may have heard, the Canada Mortgage and Housing Corporation (CMHC) and Genworth Canada announced that mortgage loan insurance premiums will increase on May 1, 2014. CMHC estimates that the average Canadian home buyer requiring insured financing will see an increase of approximately $5 to their monthly mortgage payment.  Who is impacted?  This change is applicable to owner occupied, self-employed, rental properties up to 4 units, and low-ratio refinance premiums. The mortgage loan insurance premiums for home owner and 1 - 4 unit rental residential properties will increase by 15% on average; here it’s a small chart showing increments:

Loan to Value Ratio	Current	New Premium starting May 1st.
Up to and including 80%	1.00%	1.25%
Up to and including 85%	1.75%	1.80%
Up to and including 90%	2.00%	2.40%
Up to and including 95%	2.75%	3.15%

·         As you may understand, stated income will be charge even more (ask me for details)

·         In order to be eligible for the current (lower) mortgage loan insurance premiums and surcharges, I need to submit your client’s application prior to May 1.

·         Pre-approvals that aren’t converted to live deals will be charged on the new premium.

From Td Economics:

·     All eyes were on Ukraine this week, as high tensions and mounting geopolitical uncertainty tempered global economic optimism heading into 2014.

·     As was universally expected, the Bank of Canada held firm on its overnight rate, keeping it at 1.00%.

·     Imports declined by 1.6% in January. Exports edged up by a marginal 0.2%, primarily on energy prices – in real terms, exports were down 5.3%.

·     Employment contracted by 7K net new positions in February, surprising markets who had been expecting a 15K gain. Meanwhile, the unemployment rate held steady at 7.0%.

·       GTA Housing update- Td Economics http://zh.scribd.com/doc/211767131/GTAHousing-2-2014

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

Toronto,

T:416 278 2540

W: http://mms.tdcanadatrust.com/romy.alegria/

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?

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