Showing posts with label Mortgage solutions. Show all posts
Showing posts with label Mortgage solutions. Show all posts

Tuesday, July 3, 2012

All My Single Ladies!





It’s becoming increasingly apparent that a greater number of women are now taking the reins when it comes to home purchases. There’s a growing trend among single women – and, more precisely, professional single women – who are becoming independent homeowners. While many of them may be putting off marriage, they’re not waiting around for Mr Right before taking the plunge into homeownership.

It’s believed that around 20% of homebuyers in North America are single women based on a report released last year by the US National Association of Realtors. Harvard University’s Joint Center for Housing Studies also released a report that said single women are buying in record numbers.

There’s no equivalent data for Canada, but an abundance of anecdotal information has led to the creation of shows like HGTV’s Buy Herself, which follows single women making their first real estate purchases.

Women are looking for ways to become financially independent, and investing in real estate and building equity for themselves are ways to invest in their future – building financial security.

Women are taking advantage of historically low interest rates and recognizing homeownership is often within their grasps.

Seeking expert advice
One of the amazing things about women looking to invest in real estate is that they’re getting more advice before they make the decision to enter the market. They’re seeking out mortgage experts and real estate agents, and building a plan for the perfect entry into the market. They’re making lists of areas in which they’re interested in purchasing, itemizing amenities they would
need in their ideal neighbourhoods, ensuring they have all the facts around closing costs and fees associated with making the purchase, and securing a mortgage.

Buying a home is likely one of the largest purchases you’ll ever make in your lifetime, and can feel overwhelming. That’s why working with a mortgage professional, real estate agent, home inspector and so on is essential. You’ll be working with these professionals closely – possibly for months – so interactions should feel comfortable, and they should be knowledgeable and responsive even to the smallest question.

The more prepared you are, the smoother the experience will be so do a little research on your own over the Internet to get a good idea of what types of properties and areas are of interest to you. Make a list of questions to ask the experts – and keep it on hand so you can add to it as more questions arise.

Interest rates are the lowest they've been in history and they have nowhere to go but up. Industry professionals believe that as rates begin to rise, they'll continue to rise for some time. And, effective July 9th, four changes to insured mortgages are coming into effect. The two that will have the largest impact on Canadian borrowers include: 1) a reduction in the maximum amortization period to 25 years from 30 years; and 2) a reduction in the maximum amount of equity homeowners can take out of their homes when refinancing to 80% from the current 85%. So if you're looking to make a purchase, or renew/refinance an existing mortgage, and you're seeking a 30-year amortization and/or access to 85% of your equity, this opportunity expires Monday, July 9th! If you'd like to review your options or if you have any questions, please give me a call or send me an email, and I'll be happy to discuss how these changes may affect your mortgag e situation. It's my job to ensure you have the best options and strategies available at all times!

Monday, January 9, 2012

Hybrid Mortgages: Consider a 50/50 mortgage?



Hybrid mortgages – also known as 50/50 mortgage products – include an equal mix of fixed-rate and variable-rate components within your single mortgage. This means you get the best of both worlds – the security of fixed repayments with the flexibility of a variable rate.

Although there was a time in recent years when mortgage experts considered a variable rate mortgage as the obvious choice to save mortgage consumers money over the long term, with fixed rates remaining near historic lows, a 50/50 mortgage may be a great alternative for you.

In essence, since it’s extremely difficult to accurately predict rates over the long term, a 50/50 mortgage offers interest rate diversification, which can help reduce your level of risk.

If you opt for the Dominion Lending Centres 50/50 Balanced Mortgage, half of your mortgage is locked into a five-year fixed rate and half is at a five-year variable rate. You can lock in your variable-rate portion at any time without paying a penalty.
As well, each portion of the 50/50 mortgage operates independently – like two separate mortgages – yet the product is registered as only one collateral charge.

The 50/50 mortgage product is well-suited to a variety of borrowers, including those who:
  • Would normally go fully variable but are afraid prime rate is at its bottom
  • Aren’t comfortable being locked into a fully fixed rate
  • Can’t decide between a fixed or variable mortgage
  • Savvy first-time homebuyers
Some features of the 50/50 mortgage include:
  • 20% annual lump-sum pre-payment privileges
  • 20% annual payment increase ability
  • Portability (the option to transfer your existing loan amount to a new property without penalty)
As always, if you have questions about the 50/50 mortgage product and whether it’s right for you, or other mortgage-related questions, I’m here to help!