Category Archives: Vancouver mortgage brokers

Demand For Second Mortgages in Vancouver Expected to Rise

Home owners demand for Vancouver second mortgages will go up due to dropping home prices, tight liquidity problems and tightened lending by Canadian banks. Many home owners are maxed out!

There are not many options for a home owner to deal with the problem. A major cut back in personal spending and getting rid of major financial obligations have to be made. A home owner’s personal and family finances will only improve when incomes and expenses are back into balance.

Second Mortgage Financing – A Short Term Solution

If a home owner has enough equity in his home, he may be able to take equity out to finance his emergency cash requirement. A home owner has to understand that second mortgage financing is only a short-term solution to solve his cash needs. A second mortgage may give a home owner the breathing space to sell his home at a more favorable price. Without a second mortgage to tie over the few critical months required by a home owner, his loss will be much more if his home is foreclosed.

A recent Global BC video segment “ BC Real Estate Foreclosures Explode!” high-lighted the huge increase in foreclosures in BC.

If you are in need of a short-term loan, and like to find out whether you can borrow the fund your required, you are welcomed to contact me at 604-721-4817.

Note: Second mortgages are governed by BC’s Mortgage Broker Act. Borrowers are expected to be provided with proper and full disclosures on the terms and conditions of the second mortgage loans.

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CMHC Mortgage

CMHC Mortgage is a high ratio mortgage when the down payment provided by a home buyer is less than 20% of the purchase price of a home. In Canada CMHC, Genworth Financial and AIG are 3 insurers that provide high ratio mortgage insurance to home buyers who are buying their homes with less than 20% down payment.

Home buyers can buy with as little as 5% down payment if they are qualified for high ratio mortgages.

If you are a first time home buyer, check out if you are qualified to withdraw your RRSP savings as down payment. You should also find out if you are exempted from paying the British Columbia “property transfer tax”.

The CMHC mortgage insurance premium charged is dependent how much down payment is provided by you. The CMHC insurance premium may range from 1.00% to 2.75% of your mortgage amount.

Buying with 5% down payment

The less down payment you provide, the more fee you need to pay. This insurance fee can be paid up front or added to your home mortgage. If you plan to buy a home with 5% down payment and get a high ratio mortgage, check with your bank or your local mortgage broker whether you can be approved for CMHC mortgage financing.

The 5% down payment can come from different sources such as lender’s cash back incentives, lines of credit/credit cards, arm’s length personal loans or gifted down payment. For more information on applying for a mortgage, click on this link to my website: Vancouver Home Mortgage.

Buying Your First Home

Things you should know when buying your first home

Buying your first home is exciting, but can also be a time of anxiety and apprehension. As a first time home buyer, there are many issues you need to address. It is advisable for you to work with a local real estate agent, and a mortgage broker to help you with your real estate needs.

You can discuss with your bank to find out how much you can be approved, or your mortgage broker can help you in selecting a mortgage that is right for you. You should have your mortgage pre-approved, before taking the next step in looking for a home to buy. Once you are pre-approved, you know for certain what you can afford.

Why Deal With a Mortgage Advisor?

There are many advantages working with a Mortgage Broker who are trained to provide you valuable advice. You have more choices and you can choose a mortgage plan most suitable to you. You will also get the most competitive mortgage rates and you save time shopping the mortgage yourself with different banks.

Choosing the wrong mortgage plan could be very costly to you. Should you choose a variable mortgage or fixed closed mortgage? Currently variable rate mortgage is very attractive, but is this mortgage plan right for you? Click on this link to find out whether you should consider a variable mortgage.

If you like to find out more information on getting a mortgage, kindly contact me at 604-721-4817 or Email Me Now