Calgary debt consolidation help

Calgary debt consolidation help

In 2014, Calgary mortgage broker Steven Crews, from Verico iMortgage Solutions, did a series of radio broadcasts about mortgages and mortgage financing for Shine FM. Have a listen and you’ll pick up some helpful tips…

Down payment requirements for mortgages in Canada

In 2014, Calgary mortgage broker Steven Crews, from Verico iMortgage Solutions, did a series of radio broadcasts about mortgages and mortgage financing for Shine FM. Have a listen and you’ll pick up some helpful tips…

Historically, first-time buyers were the only groups permitted to get a mortgage with a 5% mortgage down payment. Now everyone can purchase a home, whether it’s your first or next home, with a 5% minimum mortgage down payment.

Recently, I heard from a few clients who thought that they needed 10% down to purchase a home. They thought that only first-time home buyers could purchase with 5% down.

In fact, anyone can purchase a home with as little as 5% down. When you purchase a home with less than a 20% down payment, it’s called a High Ratio Insured Mortgage. A High Ratio Insured Mortgage, is insured by one of either CMHC, Genworth or CG. The insurance is for the bank, in case you can’t make the mortgage payments, and allows them to lend more than 80% of the value of the home.

Providing 20% or more as a down payment is called a conventional mortgage. Typically, the bank doesn’t require any insurance to lend up to 80% of the value of the home.

Last year, the government made some changes to the lending regulations and High Ratio Insured Mortgages. Today, if we want to refinance a home that we currently own, we can only refinance up to 80% of the value of our home with most lenders in Canada. That means it takes 5% down to purchase but 20% in equity to refinance.

Do you have a question or topic that you would like to learn more about? Let me know. If your question or topic is used on the ShineFM Mortgage Expert segment you will receive something special!

Home refinance due to separation

In 2014, Calgary mortgage broker Steven Crews, from Verico iMortgage Solutions, did a series of radio broadcasts about mortgages and mortgage financing for Shine FM. Have a listen and you’ll pick up some helpful tips…

Home renovation loans

In 2014, Calgary mortgage broker Steven Crews, from Verico iMortgage Solutions, did a series of radio broadcasts about mortgages and mortgage financing for Shine FM. Have a listen and you’ll pick up some helpful tips…

“What do you mean, home purchase with improvements”? I often hear from home buyers, first time home buyers and otherwise. They’d say, “I didn’t know that I could include the cost of my home improvements into the mortgage when I purchased a home!”

Yes, it’s possible and there is a name for it. We call it, Purchase With Improvements…

Many people say it’s tough to find a home that has everything that they’re looking for. Sometimes they love the home but there’s no garage or it needs a new paint job. The home buyers don’t have enough money to buy the home and then pay for the renovations they need.

But did you know… You can actually finance the total cost of the purchase of your home plus the improvements with one mortgage up to 95% of the total cost. This means that you just have to save 5% of the total cost. Let’s say you found a home that is listed for $375,000 and you need to spend $25,000 to build a garage and redo some of the flooring. We can finance up to 95% of the total cost of $400,000 and therefore you would invest just 5% into your home purchase without having to save additional money for these improvements.

There are stipulations:

  1. The bank will only finance the lesser of the appraised value or the total cost. If the improvements only increase the value of the home by just $15,000 and not $25,000, then you may have to make up the difference. In this case, you would have to pay the extra $10,000.
  2. The lawyer will hold onto the extra funds until you confirm that the improvements are completed.

If you want to include the cost of the improvements when you purchase your home, then you need to get quotes from a contractor or the service provider. These have to be reviewed by the lender up front. The total cost to purchase and the improvements will be reviewed by the lender and the insurer. You will know how much financing will be available before you remove your home purchase conditions.

If you decide to change contractors to complete the improvements, then you must let the bank know so that they can review the request again. Therefore, you have to give your lender adequate time before the possession date to review the new request.

Home purchase with improvements is an excellent way to get the home you want and make it just right for you!

Give your feedback. If you have a question, or topic that you would like to learn more about, let me know. If your question or topic is used on the ShineFM Mortgage Expert segment you will receive something special!

Purchase a home with zero down

In 2014, Calgary mortgage broker Steven Crews, from Verico iMortgage Solutions, did a series of radio broadcasts about mortgages and mortgage financing for Shine FM. Have a listen and you’ll pick up some helpful tips…

Yes, It’s 2014 and you can still purchase a home with zero down.

Your bank might be telling you something different, but there is a little-known government program that will allow you to purchase a home with zero down. Not all the banks have signed up for this program, but there are still many who have.

The program isn’t called, “Zero Down” anymore, but you can still effectively purchase a home without having to save the full 5% down payment.

Paying off Mortgages

In 2014, Calgary mortgage broker Steven Crews, from Verico iMortgage Solutions, did a series of radio broadcasts about mortgages and mortgage financing for Shine FM. Have a listen and you’ll pick up some helpful tips…

If your goal is to pay off your mortgage faster, then every little bit helps. Here I discuss a couple of basic ways that you can just pay a little extra and take years off your mortgage.

It’s not the payment frequency that helps you pay off your mortgage faster, it’s actually the total amount that you pay each year that counts…

Once a client gets a mortgage, their next goal is to pay the mortgage off as fast as possible. There are a number of ways to do this.

First, you can accelerate the mortgage payment. You do this by making one extra mortgage payment each year. If you choose a Weekly or bi-weekly payment option, then the payment is almost always automatically accelerated. You can also accelerate a monthly payment by increasing it by a little over 8%.

Therefore a monthly payment of one thousand dollars can be increased to one thousand and eighty three dollars. You can also take advantage of pre-payment privileges. Most lenders will offer options to increase the payment each year. Even an increase of just ten dollars each month can shave years off of your payments.

The other option is to make lump sum payments to pay off your mortgage. Many lenders will allow anywhere from 10% up to 25% lump sum payments. This is generally calculated based on the original principle. Most lenders have a minimum lump sum that they allow but every lump sum payment goes directly towards the principle of the mortgage.

This will help you to be mortgage free faster!

Give your feedback. If you have a question, or topic that you would like to learn more about, let me know. If your question or topic is used on the ShineFM Mortgage Expert segment you will receive something special!

Down payment for home mortgages

In 2014, Calgary mortgage broker Steven Crews, from Verico iMortgage Solutions, did a series of radio broadcasts about mortgages and mortgage financing for Shine FM. Have a listen and you’ll pick up some helpful tips…

If you are a first time home buyer, then why not take advantage of the only advantage that’s available to you. Many first time home buyers don’t realize that they can use the saving in their RRSP toward the down payment…

In fact, if you plan ahead you could get thousands of extra cash from the government using your RRSPs! This is what I talk about here:

The main advantage of being a first time home buyer is that you can withdraw up to $25,000 from your RRSP. This money can be used toward the purchase of your first home.

The minimum down payment to purchase a home is 5% of the purchase price. Saving that down payment is often the biggest hurdle for first-time home buyers. That’s why I suggest that you use your RRSP to save for your down payment.

For every dollar you deposit to your RRSP you will receive a tax rebate. The rebate could be anywhere from 25% to 40% depending on your tax rate. Also, monetary gifts can be deposited into your RRSP. A gift of $1,000 could end up being anywhere from $1,250 to $1,400 when you include your tax rebate. There are a couple of key rules to remember when you utilize your RSP to save the down payment:

  1. The money must remain in your RSP for a minimum of ninety days.
  2. You can withdraw under the home buyer plan up to 30 days after you take possession of your first home. Therefore, you can’t just deposit the money right before you purchase.
  3. Once you withdraw the money through the RSP home buyer plan, you have to pay it back over the next fifteen years.
    • Every year, you either contribute one fifteenth of your withdrawal toward your RRSP or you pay taxes on additional income for that tax year equal to the RRSP you didn’t make that year.
    • For example, A $15,000 Home Buyer Plan withdrawal means you must pay back $1,000 each tax year.
    • If you have to pay $1,000 back to your RRSP each year and 5 years from now you missed the contribution, then you would pay taxes on your annual income plus $1,000. The next year you can contribute again, or not.

It’s important to review all the rules when you take advantage of the CRA Home Buyers Plan, visit the government of Canada website for more info at www.cra-arc.gc.ca or search for “cra home buyer plan” on google.

I also explain a client’s specific situation here and show how they utilized the CRA Home Buyer Plan to save an additional $9,000 when they purchased their first home.

Give your feedback. If you have a question, or topic that you would like to learn more about, let me know. If your question or topic is used on the ShineFM Mortgage Expert segment you will receive something special!

First-time home buyer information

In 2014, Calgary mortgage broker Steven Crews, from Verico iMortgage Solutions, did a series of radio broadcasts about mortgages and mortgage financing for Shine FM. Have a listen and you’ll pick up some helpful tips…

I really enjoy working with first-time home buyers. I still remember buying my first home. It was the biggest investment I had ever made. So much happened, I was surprised by some things and expected others.

I was early in my lending career and I had one mentor who shared his experience with me. Now it’s my turn to share my experience with you…

This is my first expert appearance as the ShineFM mortgage expert. I still hear from some client’s who aren’t sure if they qualify as a first time home buyer and what it means to be a first time home buyer.

I work with many first-time home buyers. You are considered a first time home buyer if you or your spouse hasn’t owned a home within the last five calendar years. You may have owned a home in the past but as long as you or your spouse haven’t owned a home in the last five years, you are once again considered a first time home buyer.

The main advantage of being a first-time home buyer is that you can purchase a home and use your RRSP savings toward the down payment without paying taxes to withdraw the money. You can take out up to $25,000 from your RRSP toward the purchase of your first home.

The RRSP withdrawal can be used for the down payment, but it can also be used for other things. It can cover closing costs, pay for improvements to your home, purchase furniture or other items. You can even use these funds to pay off credit cards or loans if you want.

This RRSP withdrawal advantage can be utilized to help you build up your down payment faster or increase the down payment that you’ve already saved. I will talk about this next time.

Give us your feedback. If you have a question, or topic that you would like to learn more about, let me know. If your question or topic is used on the ShineFM Mortgage Expert segment you will receive something special!

Tips from a Calgary mortgage broker

In 2014, Calgary mortgage broker Steven Crews, from Verico iMortgage Solutions, did a series of radio broadcasts about mortgages and mortgage financing for Shine FM. Have a listen and you’ll pick up some helpful tips…

As a Calgary mortgage broker, I have had the privilege to provide 1-minute expert advice to the ShineFM audience.

I wanted to provide you with valuable information that will help you to make an informed decision when you are ready to:

  • purchase your first home
  • refinance your existing home
  • calculate how much you qualify for
  • purchase a revenue property, or
  • purchase a second residence
  • renew your current mortgage
  • purchase a home when you are self-employed
  • arrange a second mortgage
  • find out how to improve your credit
  • or just pay off your mortgage faster

I have listed the clips that have been heard on air as well as the dates they were heard.

Have a question about your specific situation, contact me directly at 403-870-2669 or complete the form at the right. Feel free to include any questions or comments. If you want me to call you, then type your phone number and the best time to reach you in the comments section.

Mortgages explained by industry expert

When we think about our mortgage, the urban myth is that we just pay interest in the beginning and then pay principle near the end. At today’s interest rates, that just isn’t true.

Many of my clients are paying rent in the $1,500 per month range. I thought that this would be the perfect payment to compare…

Many First time home buyers compare the rent payment to the mortgage payment and find that they are almost exactly the same, for the same house.

Did you know; every mortgage payment is comprised of an interest portion, paid to the bank and a principle portion paid to you. The principle portion of the mortgage payment reduces the amount of money that you owe to the bank. This principle portion goes toward and grows the equity that you have in your home. Therefore, the principle goes to you.

At today’s interest rates, the principle portion is almost half of the total mortgage payment.

Let’s compare a rent payment of $1,500 a month to a mortgage payment of $1,500 per month. After five years of making principle and interest mortgage payments of $1,500 each month, you would have gained $8,700 of principle every year.

For context, that’s like renting from your landlord for five years, then having him give you over $45,000 when you move out.

In today’s market, you can’t afford not to own your own home!

Let’s look at some more numbers… (if you want)

If you have a mortgage of $315,000 your mortgage payment is $1,489.09 at 2.99% (current rates at June 15/13) and a 25-year amortization. After 5 years, your principle balance is $269,163. Which means that you will have gained $45,837 in equity. If your home increases in value by just 1%. After 5 years, that would be an additional $16,000 of equity.

Have a question about your specific situation, contact me directly at 403-870-2669 or complete the form on the right. Feel free to include any questions or comments. If you want me to call you, then type your phone number and the best time to reach you in the comments section.

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