Are you new to Canada?

Moving to Canada?

One should plan ahead for Home ownership

If you have a job awaiting you on Canadian soil, it’s possible to also secure the purchase of a home if you plan ahead and connect with professionals before you even begin packing.

The main reason you’ll want to get in touch with the right professionals before you start to pack is to find out what important paperwork you’ll need to set aside to ensure smooth sailing through the home financing and purchasing processes.

Your first step should be to get in touch with an experienced mortgage professional. In doing so, you can set the home financing process in motion by securing a mortgage rate guarantee and pre-approval, and figuring out what supporting paperwork you need to provide to purchase a home in Canada.

The services of myself and most other professionals are typically free – they are paid by lenders for bringing in new business. We have access to lenders – including banks, credit unions and trust companies – where we can compare products and rates, and find the ideal mortgage to meet your unique needs.

In most cases, Canadian lenders and insurers want to see employment letters that prove your offer of employment and salary in Canada. You must also have at least a 5% down payment for the home from your own resources – which means it has to be your own money, not borrowed or gifted.

So, for instance, if you’re selling your home in another country and using some of the proceeds as a down payment on a home in Canada, you must be able to prove this.

Lenders and insurers also want to see that you have a solid credit history.

Although requirements for this proof varies based on which insurer and lender your mortgage is funded through,I would be able to tell you exactly what documents you’ll need to provide.

More often than not, an international credit bureau is more than sufficient to prove your credit history.

If this is not available, you can also provide 12 months’ worth of bank statements, mortgage or rental payment receipts, utility or telephone bills, and so on.

Again, there are several options from which to choose and we would be able to specifically tell you what a particular lender and insurer want to see.

You must also apply for landed immigrant status to get the ball rolling on securing your social insurance number (SIN), which is required before you begin working in Canada.

By securing mortgage financing prior to moving to Canada, all you have to do when you arrive is find a home. This will be an easier task when you already know exactly how much you can spend thanks to your pre-approval. It will also alleviate stress and make the whole process that much more enjoyable.

And since your mortgage professional can put you in touch with a trusted real estate agent prior to your move, you will also be able to research homes before you arrive in Canada. Again, real estate agents do not typically charge a fee to find you a home to purchase.

By planning ahead before making your move, you truly can save yourself a lot of hassle and stress when it comes to securing mortgage financing and purchasing a home.

And if you’re already living in Canada, many of the available New to Canada mortgage products apply to new immigrants who have been in the country for up to 36 months.

Here is a rough idea of some of the things to set aside in advance:

·         Proof of employment and salary in Canada

·         Proof of at least 5% down payment from your own sources

·         Government proof of residency application

·         Copy of your immigration papers

·         Copy of your passport

·         Credit report

·         Mortgage or rental payment receipts for the past 12 months

·         Bank statements, utility and phone bill payments for the past 12 months

Have a look at my website for a more in-depth look at what the program is and what it can offer New Canadians. There might even be a link to a certain team's website that may or may not be competing in the Stanley cup Finals. www.kevynoyhenart.ca

Until tomorrow...

Kevyn

Over night rates and the BOC

Mark Carney.

Here is guy who has a hug influence on Variable Rates in Canada.

For those of you not in the know, he is the the governor of the Bank of Canada. Appointed on October 4, 2007, Carney began his seven-year term as the Bank's eighth governor on February 1, 2008. At the time of his appointment, Carney was the youngest central bank governor among the G8 and G20 groups of nations.
Carney's actions as the Bank of Canada's governor are said to have played a major role in helping Canada avoid the worst impacts of the financial crisis.

When he speaks, we listen to say the least.

On Monday of last week, Mr. Carney spoke to the Canadian Club of Ottawa.

Mark's presiding theme was that the world’s economies are realigning. He believes with emerging markets now accounting for nearly three quarters of the world’s economic growth, there is concern about Canada’s reliance on the United States as its primary export market.(we only send 10% of our exports to emerging markets).

He reminded us that recessions caused by financial problems are more severe and last twice as long as other recessions. Words to take to heart.

He was then quoted as saying “any further reduction in monetary stimulus would need to be carefully considered.” In other words, the BOC will think long and hard before raising their overnight rate.

Now if you noticed late last week lenders continued to inch their fixed-mortgage rates downwards last week. Most dropped them by an average of 10 basis points (0.1%) while the five-year Government of Canada bond yield finished the week lower. The belief that rates are headed nowhere but up seems to be softening, which is always nice.

Variable-rate discounts didn't change and with posted mortgage rates dropping this week, the Mortgage Qualifying Rate should drop to 5.59% today, hopefully. This will make it a little easier to qualify for variable-rate financing.

And now the bottom line....

The Economists who were calling for summer rate hikes will revise their estimates, and will suggest that a fall rate rise is more likely than the one being forecast for July.

This is great for variable-rate mortgage borrowers.

And considering BC specifically, we are 85-15 in favor of Variable to Fixed rates.

Just thought I would throw that out there.

There is a lot of valuable information on my website in regards to making an INFORMED decision on which type of rate to choose. Have a read www.kevynoyhenart.ca

Until tomorrow...

Kevyn

The power of many....

The Power of Many.....

I am not in a Mastermind group, for those of you familiar with Napoleon Hill and his work on this fascinating field of work.

I have never been involved in group dynamics like I was just a few days ago in Las Vegas, Nevada.

I was down in Vegas on Business. I know what you're saying and thinking...who goes to Vegas on business?

Well, lets just say mostly business and leave it at that.

There was a Costume contest that I happened to win, but that is for another day....

We had the pleasure of listening to Doug Bolger. For those unfamiliar with his work or what he does, here is a link to his website. http://ilearn2.com/  . He has worked with a vast array of groups including Tiger Woods and more recently helping the Canadian Olympic committee formulate its strategy to win more medals at the recently concluded Olympics in Vancouver.

An absolutely amazing individual.

Needless to say there were at least 150 of us in the room.

We wandered around the room doing various vague and unique assignments in random groups chosen by chance.

One of the exercises we did I wanted to write and portray to you today. The reason is because it absolutely blew my mind.

We were put into a group of 8 people. None of knew the other any better than the rest. We came from different parts of the country and or Province in some cases.

We were given the task of verbalizing the Alphabet, A-Z orally, with only one person saying one letter and then someone the next and so on until complete. If letters were doubled up, in other words 2 people said the same ones, you started over.

His clue to us was this...."Close your eyes and it becomes easier..."

So we did.

We stood shoulder to shoulder, arm in arm, eyes closed, in silence.

It took us about 5 minutes, but we got the feeling.

I can't explain it.

I am struggling to even commit my thoughts to this on what happened.

But here it is in my own words.

After a few mistakes and getting no further than the Letter "F", we made the transition.

The transition from individuals to a group. From many to one. From the 8 of us, into one like minded group.

There was an energy I cannot place my finger on that we all felt. Everyone took their turn and we didn't miss a beat.

There were sometimes pauses of 20 seconds or more while we each awaited our turn, not ever knowing when it would be.

We had to feel when it was our turn.

I was blown away. Not only did we accomplish it that once. We did it again without failure.

No patterns....No pre-determined path around the circle.

Just a feeling and go with it.

It just goes to show, that with a quick pause, a deep breath, true attention to what is happening in the now, you can accomplish what you put your collective minds to.

I wish I had some of this on my website to share, but I do not. What I do have is this. A collection of information put forth by a group similar to the one in which I just described. Feel free to click through and see...   www.kevynoyhenart.ca

Until tomorrow....

Kevyn

What sort of Mortgage payment can I afford?

Are you out there?

Are you new to the process or haven't done it in a while?

Are you feeling nervous?

Are there lingering trepidations?

If you are looking for a new home, be sure you are pre-approved. It will alleviate most of the fear in the process.

With a mortgage pre-approval, a professional can do a more complete verification prior to sending you shopping for a home, and with that done, the dollar figure you are going shopping with is actually what you can spend.

This not only helps you out, but the Realtor is more informed as well which makes the whole process smoother. They can dedicate time knowing that you can afford a place in a certain price range and not have to worry if it will fall through based on Income.

The mortgage professional that you work with to get pre-approved will let you know for certain what you can afford based on lender and insurer criteria, and what your payments on a specific mortgage will be.

Licensed professionals can lock-in an interest rate for you for anywhere from 60 – 120 days while you shop for your perfect home. With that rate locked in, you are guaranteed to get a mortgage for at least that rate or better.

If interest rates drop, your locked-in rate will drop as well. However, if the interest rate goes up, your locked-in rate will not, ensuring you get the best rate throughout the process.

In order to get pre-approved for a mortgage, We'll require a short list of information that will allow us to determine your buying power.

We will explain to you the benefits of shorter or longer mortgage terms, the latest programs available, which products we believe will most likely meet your needs the best, plus we will review all of the other costs involved with purchasing a home.

There are a lot more intangible costs to a purchase above and beyond down payment and legal fees. Write me a quick email to koyhenart@shaw.ca  and I will send you a quick .pdf file with a list of things often forgotten in the hysteria of moving and purchasing.

Getting pre-approved for a mortgage is something every potential home buyer should do before going shopping for a new home.

A pre-approval will give you the confidence of knowing that financing is available, and it can put you in a very positive negotiation position against other home buyers who aren’t pre-approved.

It is quite often one less stress that you have to deal with and guaranteed you will sleep better at night knowing exactly what you can afford comfortably.

Need more information on the whole Home buying experience?

visit my website at www.kevynoyhenart.ca and feel free to download all of the available information that I make available to you, my adoring public.

Until next time...

Kevyn

Revenue producing properties

We've done a few of these lately, so I thought I would pass on some words regarding these properties and the lending criteria that needs to be satisfied in order to make them work.

After all, although the real estate market slowdown has seen prices drop and interest rates dip, rental income has not wavered.

Which might mean this is an optimal time to start building your revenue property portfolio or continue adding to your existing list of properties.

In order to take advantage of this opportunity, the key is to work with a professional who has an expertise in this area and can provide you with a wealth of knowledge and ongoing information that will help you make informed investment decisions and feel at ease throughout each purchase.

Brokers offer an invaluable service to real estate investors because, if the mortgages on your investment properties are not set up properly from the on-set of each venture, you will not be able to get future financing – a necessity for continuing to build your portfolio of revenue properties.

Brokers who are experts in dealing with real estate investors know that a portfolio approach must be taken to ensure future financing for those looking to purchase revenue properties.

An experienced  professional will ask you in detail about your specific property investment goals and develop a game plan for the next five or 10 years based on these goals.

I can work with you in order to determine where you currently stand in terms of your real estate goals, where you need to be to meet those goals, and the steps involved to get you there.

Keep in mind, however, that your plan should be revisited with a professional at least annually to ensure you’re still on track.

A team of experts

As always, a mortgage professional who specializes in helping clients acquire revenue property is also likely to partner with other investment property experts, including real estate agents, lawyers, accountants, insurance agents and contractors, to name a few, which enables us to provide valuable information to you through this knowledge network we have created.

By forming ties with other trusted experts, your mortgage professional is able to provide you with a one-stop shop for meeting all of your real estate investment needs.

We can also help direct you to other organizations that will offer you further insight into your real estate investment needs. If you join groups such as the Real Estate Investment Network (REIN) or even a local Rental Owners and Managers Society (ROMS), for instance, you can receive a wealth of added knowledge catered to your revenue property needs.

While REIN can provide market insight and investing tips through years of experience, ROMS helps with credit checks for potential tenants, keeps you abreast of changes to the Residential Tenancy Act and other topics/concerns often faced by landlords.

So before you begin building your revenue property portfolio, ask someone like me what we can do to cater to all your real estate investment needs.

My website offers links to all Associations mentioned in the above blog. Visit my site today and click through to where you need to go.

Until tomorrow...

Kevyn

What is a Mortgage Broker exactly ?

Hmmmm....

Wikipedia defines it as this:

" A mortgage broker acts as an intermediary who brokers mortgage loans on behalf of individuals or businesses."

Merriam Webster describes a Broker as such:

"one who acts as an intermediary."

But what is a definition that a non0industry professional can understand.

How about this....

Think of mortgage brokers as scouts. They find and evaluate home buyers, analyzing each person's credit situation to determine which lender is the best fit for that person's needs.

Does that make it easier to understand my job?

Mortgage brokers are professionals who are paid a fee to bring together lenders and borrowers.

This means we don't charge fees to clients save and except the most trying and trivial circumstances.
That means no hidden costs associated with the way we work.

On a side note, Brokers in BC are the most highly regulated across Canada.

What does that mean for you the end consumer?

It means disclosure. It means transparency. It means we conduct open and honest business with each and every one of our clients.

We can work with dozens or even hundreds of lenders, not as employees, but as freelance agents.

We submit an application to one or more lenders in order to sell it, and we work with the chosen lender until the loan closes.
 
A good mortgage broker can and will find a lender for just about any type of credit.
 
What does that mean for you?
 
Peace of mind knowing they are working for you and not the institution they are obtaining funding from.
 
What Difference Does it Make?

Why should I care as long as I get financing?

A local or online mortgage broker may find you a lender in another part of the country. An online bank might not have a local office where employees can help you one-on-one. Some out of town lenders don't understand the types of heating systems used in specific areas, they aren't familiar with private septic systems, and they don't immediately understand common classifications and terms used by local appraisers. Those are just a few examples of problems we see.

Using a local bank can sometimes be a plus. Their staff generally understand the specifics of local properties, but a distant lender who doesn't will delay closing until questions are answered. A Broker can often find a lender who will make loans that a bank refuses--problem credit is one example. Loans for unique or commercial properties might be easier to secure through a mortgage broker.
 
Why write this?
 
In our world we are commonly misunderstood.
 
Brokers who have obtained their AMP designation are the most highly accredited professionals you can use in your home buying process.
 
Look for the AMP designation when choosing your Broker.
 
Check out my website for links to finding more out about the AMP designation and why I worked hard to obtain it. www.kevynoyhenart.ca
 
Until tomorrow...
 
Kevyn

Trust the process....

AV should patent this line "Trust the process."

He has been saying it all year and has the Canucks believing in it as evidence of their second round lead in the series with Nashville.

Living in Richmond, and reading the local papers and the 2 big ones everyday has given me an inside edge to Canuck nation and what they are doing to maintain their success.

I have also adopted this saying in both my Business life and in my various positions Coaching the youth's of today's sports world.

And this can relate to the very same idea of mortgages and or house hunting/selling.

Trust the process.

It's been done before many a time.

It will be done again many a time.

When I teach my son's team how to hit a ball coming at them from 30 feet at 30 MPH, I first get them comfortable with the process.

Stand there and watch the balls cross the plate first.

Get an idea of what it feels like.

Next, lets try to make contact.

After the coordination has been established, then you can work on the little things.

Bat back, off the shoulders, elbow at 90, feet shoulder width apart, balanced stance, hands loose, knuckles lined up, eyes on the ball at all times, watch the ball hit the bat, run!

It gets more complicated, but that is the basic process.

Same thing with a home.

Get your Realtor to find you what you like.

Do a few drive by's and see if you like the neighborhood, schools, etc.

Get a feel for each place, talk to the neighbors.

Then get your Realtor to get you a showing.

Get a feel for the inside, the walls, the rooms, the curves....

If you like what you saw, sleep on it.

Talk about it the next day, make an offer if you truly like it.

Trust the whole process.

It is there to protect you from making a bad decision, not to slow things down and make it complicated.

Yes the process can become complicated. Yes there are ups and downs, yes's and no's.

But your Realtor is there to help and counsel.

Just like your Broker.

Just like you Coach.

Just like Mom and Dad always were back in the day when you needed the guidance.

Make Chad and I work for you today!

Take a peek at my website and see what I have to offer. Read the testimonials of REAL people I have worked with. Who I refer. http://www.kevynoyhenart.ca/

Until tomorrow...

Kevyn

Things to keep in mind between the Approval and Funding dates

Here are a few points to consider with obvious consequences that can have a real impact on your Mortgage.

In light of the new market realities and tightening of credit underwriting standards by both lenders and mortgage default insurers as of late,  keep in mind that now – more than ever – it’s important to be careful what you do between the time your mortgage is approved and when it funds. 

A few mortgage lenders and insurers have been doing something lately that they have not done in a long time – pulling new credit bureaus prior to funding, especially if there is a long period between the time of your approval and when the mortgage actually funds.

Following are eight tips to keep in mind between your mortgage approval and funding dates:

1. Don’t buy a new car or trade-up to a more expensive lease. A lender reserves the right to pull another credit bureau just before closing..and guess what reports on there...?
2. Don’t quit your job or change jobs. Even if it’s a better-paying job, you still are likely to be on a probationary period. If in doubt, call your mortgage professional and they can let you know if this may jeopardize your approval.
3. Don’t change industries, decide to become self-employed or accept a contract position even if it’s within the same industry. Delay the start of your new job, self-employment or contract status until after the funding date of your mortgage.
4. Don’t transfer large sums of money between bank accounts. Lenders get especially skittish about this one because it looks like you’re borrowing money. Be ready to document cash transactions or money movements.
5. Don’t forget to pay your bills, even ones that you’re disputing. This can be a real deal-breaker. If the lender pulls your credit bureau prior to closing and sees a collection or a delinquent account, the best you can hope for is that they make you pay off the account before they will fund. You don’t want to have to scramble to pay off a debt at the last minute!
6. Don’t open new credit cards. Again, just wait until after your funding date.
7. Don’t accept a cash gift without properly documenting it – even if this is from proceeds of a wedding. If you have a bunch of cash to deposit before your funding date, give your mortgage professional a call before you deposit it.
8. Don’t buy furniture on the “Do not pay for XX years plan” until after funding.  Even though you don’t have to pay now, it will still be reported on your credit bureau, and will become an issue – especially if your approval was tight to begin with.

While you may not risk losing your mortgage approval because you have broken one of these rules, it’s always best to talk to your mortgage professional before doing any of the above just to make sure!

The chances of a lender pulling a bureau just before funding is enough to setract you from taking the chance. Every debt is factored into the servicing of your new mortgage.

Is that new car or furniture worth that big a risk to have it one month early?

Check out my webpage for more details on how a bank looks at your proposal for a mortgage and how they calculate the debt servicing ratios.  http://www.kevynoyhenart.ca/


Patience I believe is a learned trait, not a virtuous one. Exercise yours today !

Until tomorrow...

Kevyn