Freddy Marks 3A Network Group

Kevyn Oyhenart , AMP
Mortgage Consultant

White House Mortgages

Phone: 604.596.9055
Cell: 604.341.5798
Fax: 1.866.580.6955
E-mail
Website

DID YOU KNOW...

When the government cut maximum mortgage amortizations in 2008 and 2011, most big lenders reduced amortizations on all of their mortgages. They didn’t need to apply the changes to uninsured mortgages, but many did anyway. Not this time. When the Department of Finance trimmed the insured amortization limit to 25 years on July 9th, 2012, most lenders left their conventional mortgage amortizations at 30-35 years. Even the major banks have left 30-year amortizations in place, which surprised many in the mortgage business.

HOMEOWNER TIPS

Choosing a Home Security Company:

Rather than discarding or recycling clothing and household goods, give them a chance at a second life. Gently used clothing can be donated to charity or exchanged with friends and family. Old T-shirts can be repurposed into rags for cleaning. Household goods can be donated to charity or sold at a garage sale. Through repurposing, the amount of waste being sent to landfill sites is reduced, there is no need to use energy for recycling, and others can benefit from your used items.

About DLC Leasing Inc

* DLC Leasing is the leasing division within Dominion Lending Centres Inc.

* Our leasing programs provide up to 100% financing on business-related equipment.

* Leasing options include new equipment leasing; used equipment and vehicle leasing; customized solutions through vendor finance programs; and lease-backs –where the lender buys equipment from a business owner and the owner leases it back.

* Technology, heavy equipment and trailers, furniture and hospitality equipment, and manufacturing and industrial equipment are just a few examples of available leasing options.

* With access to multiple lending sources, Dominion Lending Centres’ Lease Professionals can cater to leasing deals for a variety of credit scenarios ranging from A to C credit quality.

* Because many of our Lease Professionals are also licensed mortgage agents, we can offer standard equipment leases and creatively structured solutions for seasonal, new or growing companies.

* Working with someone who is both a lease and mortgage expert enables you to even use commercial and residential mortgage and property credit line products, alone or in combination with lease financing, to help achieve the best solutions for your equipment acquisition needs.

* Our Lease Professionals can even break up large-dollar transactions into multiple leases across a number of funders to ease and simplify the approval process.

Canadians seeking a sure-fire investment return should look no further than their mortgage. Paying it down as quickly as you can will, in most cases, result in a stellar return on your investment.
 
Prepayment options are worth exploring because paying down even a small amount of principal (the true cost of the mortgage loan minus the interest) has huge benefits over the life of a mortgage.

Mortgages are front-loaded when it comes to interest meaning, in the early years, most of the money you pay goes toward paying the interest on the amount you borrow as opposed to the principal.

For instance, if you borrow 95% of your home’s value, you’re paying $3 of interest for every $1 of principal you pay. So, by paying an extra $1 of principal, that’s $3 less you’ll have to pay in interest, at least in the early stages of a mortgage.

Range of prepayment options
There are a variety of ways to make prepayments work to pay down your mortgage faster. We can discuss your specific needs, but following are some general rules.

Most lenders allow you to make a lump-sum payment of anywhere between 10% and 25% of the value of your mortgage per year. The lump-sum payment is based on either the original amount you borrowed or the amount currently outstanding. Since mortgages decrease with each payment, it’s best to negotiate a lump-sum payment option based on the original amount you borrow. That way, if you come into an inheritance, a big bonus or save a large sum of money, you can pay down the largest amount possible.

Another factor to consider is when you can make a lump-sum payment. Some mortgages allow prepayments during the year, while others permit it only on the anniversary date. Still others allow you to make prepayments on the day you make your regular payment.

If you can’t pay the maximum prepayment amount, it’s still worth your while to at least make some extra payment, even if it’s a few thousand dollars each year. That will still save you thousands of dollars in interest payments.

Another prepayment option involves taking advantage of flexible payments. Most lenders allow you to increase your regular payment up to a set maximum, such as 15%, while others allow you to double up your payments.

If, for instance, you have a $1,000 per month mortgage payment and increase it by 15% to $1,150, you could shave off as much as five-and-a-half years on a $200,000 mortgage.

You can also pay off your mortgage faster by moving to a different payment schedule. Instead of making monthly payments, make them biweekly or even weekly. Using an accelerated mortgage – where you make payments every two weeks as opposed to twice a month – you actually make one extra payment in the calendar year. By paying more and paying faster, you reduce your principal earlier, which lowers the amount of interest you pay.

Another option is to round up your mortgage payment from, say, $766 to an even figure such as $800, because any extra little bit goes toward the principal.

As always, if you have any questions about paying off your mortgage faster or about your mortgage in general, I’m here to help!

A good credit report and credit score are important factors in determining whether you will be approved for a mortgage. Following are some simple steps you can take to maintain a good credit history and improve your chances of being approved.

What is a credit score?
Your credit score is a number that illustrates your financial health at a specific point in time. It also serves as an indicator of your financial past, and how consistently you pay off your bills and debts. This is one of the factors mortgage professionals consider in qualifying you for a mortgage.

Checking your credit score
To find out your credit score, contact Canada’s two credit-reporting agencies: Equifax Canada at www.equifax.ca and TransUnion Canada at www.transunion.ca.

For a fee, these agencies will provide you with an online copy of your credit score as well as a credit report – a detailed summary of your credit history, employment history and personal financial information on file. You can also obtain a free copy of your credit report by mail every year. If you find any errors in your report, notify the credit-reporting agency and the organization responsible for the inaccuracy immediately.

Credit history
It’s important to begin building a credit history as early as possible. You can start by applying for –

and responsibly using – a credit card. Your financial institution or mortgage professional can help.

Boosting your credit
Demonstrating your ability to manage credit is key to maintaining a good credit score. There are a number of things you can do to improve your credit score, including:

• Always pay your bills in full and on time. If you can’t pay the full amount, try to pay at least the required minimum shown on your monthly statement
• Pay off your debts (such as loans, credit cards, lines of credit, etc) as quickly as possible
• Never go over the limit on your credit cards, and try to keep your balances well below the limits
• Reduce the number of credit card or loan applications you make

Once your credit score has improved, work with your mortgage professional to obtain a mortgage that works for you.

To find out more about credit scores and reports, visit the Financial Consumer Agency of Canada website at www.fcac-acfc.gc.ca and download or request a free copy of their guide, Understanding Your Credit Report and Credit Score. This guide provides practical, straightforward information on how to obtain and understand your credit report and score, as well as how to build and maintain a good credit history.

• We are Canada’s largest and fastest-growing mortgage brokerage!
• We have more than 2,000 Mortgage Professionals from more than 350 locations across the country!
• Our Mortgage Professionals are Experts in their field and many are ranked among the best nationally.
• We work for you, not the lenders, so your best interests will always be our number one priority.
• We have more than 100 mortgage programs, making it easy to choose the best fit for your unique situation.
• We close loans in all 10 provinces and 3 territories.
• We can process your mortgage in as few as 7 days.
• We are the preferred mortgage lender for several of Canada’s top companies.
• Dominion Lending Centres’ Mortgage Professionals are available anytime, anywhere, evenings and weekends – and we’ll even come to you!