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Posted by: Livian Smith
DLC BLOG
It’s all about the property
With all of the rule changes imposed by the federal and provincial governments around mortgage financing and real estate it may be more difficult to access financing. But don’t take it personally – sometimes it’s not you it’s the property.
When lenders underwrite your application for approval they look at you as a borrower but they also evaluate the property.
Posted by: Livian Smith
DLC BLOG
What is the difference between a Mortgage Broker and a Mortgage Specialist
With the importance of real estate in Canada, it is vital to understand how the various professionals in the sector operate when buying a home.
Sooooooo… what is the difference between a Mortgage Specialist & a Mortgage Broker? At the surface they sound the same
• They both arrange mortgages
• They both can offer advice and help you select a mortgage, right?
WRONG!!! There are many differences… Let’s check some of them out!
Posted by: Livian Smith
DLC BLOG
All About Pre-Approvals
Are you in the market for a new home? That’s great – but if you’re not already pre-approved from your mortgage broker, be sure to read on.
Pre-approvals are very important for two reasons.
They give you confidence in knowing that a specific amount of financing is available for you.
A pre-approval can put you in a positive negotiating position against other home buyers who aren’t pre-approved.
Not all pre-approvals are the same, though. There are essentially three different kinds.
Posted by: Livian Smith
DLC BLOG
Mortgage Protection Plan
Insurance coverage is something that everyone is “pitched” at some point or another in their life. Unfortunately, a lot of us have a negative attitude towards insurance or warranty as it is perceived as being a cash grab.
Yes, if you are purchasing a flat screen T.V., that extra 2-year warranty for $100 might be a little excessive. However, when it comes to covering monthly mortgage payments or the outstanding balance of your mortgage upon death or injury, yes, it is important to have.
Posted by: Livian Smith
DLC BLOG
Is your Line of Credit Killing your Mortgage Application? Some of the last round of changes from the government regarding qualifying for a mortgage were that if you have a balance on your unsecured line of credit, then to qualify for mortgage the lenders require that we use a 3% payment of the balance of the line of credit.
Simple math is, if you owe $10,000 we have to use $300 as your monthly payment regardless of what the bank requires as a minimum. Given that the banks hand out lines of credit on a regular basis it is not uncommon for us to see $50,000 lines of credit with balances in the $40,000 range. That amount then means we have to use $1,200 a month as a payment even though the bank may require considerably less.
Posted by: Livian Smith
DLC BLOG
5 Tips on how to get out of debt and into your own home
5 Tips on how to get out of debt and into your own home. To get out of debt, you need a plan, and you need to execute that plan. That’s why I’ve created this simple, five-step, get-out-of-debt checklist that can help you leave that financial burden behind you.
As you work on your plan, you’ll need to make all necessary adjustments to your budget along the way so you don’t overspend and slide back into debt. Plus, if you don’t have an emergency fund, consider setting some money aside in savings beforehand.
Keep this checklist someplace where you’ll see it often (like your refrigerator door), and make it your goal to check a task off the list each day (or each week), depending on how quickly you want to become debt-free.
Posted by: Livian Smith
DLC BLOG
The Right Kind of Debt
The Right Kind of Debt. Put yourself in a bank or lender’s shoes. Someone comes into your branch and asks you to politely loan them $300,000. You are a big bank, but $300,000 is still a lot of money. How do you ensure this person is going to pay back the money you loan them, on time, and in the right amount? Look at their record for borrowing other people’s money.
This is why taking on different kinds of debt when you are young is a good thing, but it must be within reason.
Posted by: Livian Smith
DLC BLOG
7 Questions to Help You Decide if You Should Pursue a HELOC, Refinance or Second Mortgage
HELOC, Refinance or Second/Third Mortgages? Which one should you choose to go with? If you have decided to tap into the equity in your home, the three can seem to be interchangeable at times and for many consumers can be a difficult decision on which one to select. We have laid out seven questions to guide you through the decision, for your unique situation. We’ve also broken this down into three categories, Equity, Payment and Availability.
Posted by: Livian Smith
DLC BLOG
Debt Service Ability. A renewed lender focus
Debt Service Ability. A renewed lender focusDebt Service Ability. A renewed lender focus it seems. As interest rates firm, valuations are impacted, and cap rates begin to firm. What about Debt Service Ability?
It is becoming more apparent that property income, and more specifically net operating income available to service debt, has a significant and growing influence on the amount of debt available to a commercial property owner.
This is increasingly evident with lender attitudes as well. Cash is King to your commercial lender, notwithstanding the relative amount of leverage on your asset.
Posted by: Livian Smith
DLC BLOG
Don’t Forget the Closing Costs When You Purchase a Home
Don’t Forget the Closing Costs When You Purchase a HomeThe purchase price you negotiate when buying or selling a home is just one part of the total cost for buying a home. In addition to the purchase price there are several other fees – known as closing costs – all of which you need to factor in to your purchase price.
Closing costs tend to be hidden costs when buying a home. It’s not a set number, but a compilation of various administrative, legal fees and other one-time expenses associated with the purchase of a home that are due on the completion date.
These costs can add up, so you’ll need to factor these costs into your cash-on-hand budget.
Many first-time home buyers under estimate the amount of cash they will need for closing costs. Typically, you’ll want to budget between 1.5% and 4% of the purchase price of a resale home to cover closing costs.