11 Oct

Manitoba Metis Federation – First Time Homebuyer Purchase Plan – Up To $20,500 In Forgivable Grants

General

Posted by: Peter Paley

October 11, 2023
The Manitoba Metis Federation – First Time Home Purchase Plan up to $20,500 forgivable grant available.
The Manitoba Metis Federation has an excellent grant program for Metis Citizens. The program will provide 5% of the purchase price up to $18,000.00 plus closing costs of up to $2,500.00 for a total maximum grant of $20,500.00. The grant is forgivable, if the applicants remain in their home as their principal residence for 10 (ten) years after which time the FTHPP will be forgiven and discharged from the title.
Eligibility:
✅Proof of Metis Citizenship
✅Be 18 years of age or older
✅Must meet and qualify for a mortgage using lender and default mortgage insurer lending guidelines – contact us today to start your application or follow this link https://velocity-client.newton.ca/en/client/journey…
✅The purchased home must be the applicant’s primary residence.
✅Applicants must not have ownership in any real estate (including land) with a market value of more than $30,000.00
✅Family/Household taxable income as stated in the CRA notice of Assessments must be below $100,000.00
✅Applicants must have current combined liquid assets of less than $60,000.00
✅Maximum home purchase price of $600,000.00
Application Process:
Visit our website by following the link at the top of the post to find the MMF- FTHPP application link.
Conditions:
➡️All funds advanced will be sent to the lawyer in trust and will be applied towards the purchase of the home and related closing costs
➡️A ten (10) year 2nd mortgage charge will be registered by LRCC – Louis Riel Capital Corporation against the property behind the principal mortgagee to ensure long-term residency.
➡️The Metis applicants must remain in the home as their principal residence for 10 years after which time the FTHPP mortgage will be forgiven and discharged.
➡️The applicant may put up to $60,000.00 of their own funds toward the purchase of the home.
➡️The applicant may use the MMF-FTHPP in conjunction with the Government of Canada’s FTHBI – First Time Homebuyer Incentive
➡️The applicant will need to have enough of their own funds to make a deposit on a home.
➡️Co-signors are permitted if they will be living in the home and be co-applicants on the mortgage.
➡️If you want to move to a new home within the 10-year period the mortgage may be transferred.
➡️Exceptions for divorce or separation may be made to keep the grant in place.
Contact us for more information and to apply for your mortgage!
10 Oct

Why Use A Mortgage Professional?

General

Posted by: Peter Paley

October 10, 2023

https://peterpaley.com/mortgages/benefits-of-using-a-mortgage-professional/

Why Use A Mortgage Broker?

When people are asked this question, the most common answers are;

– Lowest Rate! – Most of the time this is true.
– Better Terms! – Almost always this is true.
– Better Service! – Almost always this is true.
– MORE CHOICE – Always true!

Here are some of the programs and services that we offer and have access to and use on a daily basis;

– Fully Underwritten Pre-approvals
– Self-employed (less than 2 years)
– Business For Self-Stated Income
– Borrowed Down Payment/Flex-Down
– First Time Home Buyer Incentive
– First-Time Home Purchase Program (Manitoba Metis Federation)
– Purchase + Improvements
– 2nd Home/Vacation Home (5% Down Minimum)
– Hobby Farm Financing
– Commercial Mortgages including CMHC High Ratio Refinance
– Conventional Stated Income
– Conventional Bruised Credit
– Home Equity Lines Of Credit
– Hybrid Equity Mortgages
– 2nd Mortgages
– No fee/Low Fee Mortgage Transfers and switches
– Mortgage Life & Disability Insurance
– New To Canada
– Rental Property Financing
– Converting Existing Home To Rental & Buy New
– Business Loan Financing
– Business Equipment Leasing
– Vehicle/Boat/RV Refinancing
– 12-Month Rate Holds For Construction/Home Builds (completion)
– Private Mortgage Financing

If you are planning on financing a property in the near future contact us today!

If you are a REALTOR in Manitoba or Alberta and need to connect with a mortgage professional for your clients or just have some questions, we would be happy to help.

#mainstreammortgages #MortgageApproval #MortgagePreApproval #mortgagerates #mortgagebroker #mortgagespecialist

6 Oct

Refinancing Your Mortgage At Renewal

General

Posted by: Peter Paley

October 6, 2023 – Happy Thanksgiving!

https://peterpaley.com/refinance/

Refinancing At Renewal

Interest rates are stubbornly high. As we have been posting for the last few weeks renewals were going to be tough on some households.

Fixed mortgage rates have been steadily increasing and many renewal agreements that we are seeing are well north of 6%. In some cases, this is a doubling of a borrower’s mortgage interest rate.

The important thing to remember is to stay calm. If your interest rate is doubling, that doesn’t mean that your mortgage payment is going to double, but it will increase and the increase may be uncomfortable.

One strategy is to refinance at renewal. If there is enough equity in your home, you may be able to improve your household cash flow by taking out the equity in your home and paying off debts like credit cards, lines of credit, and vehicle/student loans. Payment affordability is going to be a hot topic in the coming months.

Even if you are comfortable with the higher rates and payments on renewal, it can really pay to get a 2nd opinion. We are able to offer you even better rates if you have a lot of equity built into your home (25%, 35%, or more). Even if we are unable to better your mortgage rate and terms, you will have the peace of mind that you made the wisest decision you could make at the time!

Contact us about your mortgage renewal or to see if refinancing is right for you!

 

contact form (1)

  • Contact Information

  • About You (optional)

#mainstreammortgages #mortgagerenewal #mortgagerefinance #mortgagebroker #mortgagerates

1 Oct

Open Houses – Sunday October 1, 2023

General

Posted by: Peter Paley

Happy Sunday!

There are 185 Open Houses scheduled for today ranging in price from $164,900 to $1,074,000 in Winnipeg and the surrounding areas.  Click the link below to be redirected to Realtor.ca where all of the open houses have been prepared for you to view.

CLICK HERE TO SEE ALL THE OPEN HOUSES LISTED ON REALTOR.CA

If you’re in the market for a new home, you can download our amazing My Mortgage Tool Box App!  Find Mortgage Rates, get pre-qualified and use our set of unique calculators.
CLICK HERE TO DOWNLOAD OUR MY MORTGAGE TOOLBOX APP

If you found your dream home today, please contact us with any questions you have and we can send you our introductory e-mail with our application process.

contact form (1)

  • Contact Information

  • About You (optional)

28 Sep

MORTGAGE MYTHS – BUSTED

General

Posted by: Peter Paley

September 28, 2023

Mortgage Myth Busters:

Today our post we will be busting common mortgage myths.

Myth #1: Mortgage Brokers Cost Too Much Money – BUSTED

While there may be times when a mortgage broker needs to charge a fee, in most cases we are paid directly by the lender a commission or fee that is based on the size of the mortgage and the length of the mortgage term.

Myth #2: I Need 20% Down To Purchase My Next Home – BUSTED

Anytime a home buyer is purchasing their primary residence or secondary residence for their own use the minimum down payment rule applies of a minimum of 5%.

Myth #3: I Must Use My Bank For My Mortgage – BUSTED

A homebuyer can use whatever financial institution that fits their needs better. Whether it is a Bank, Credit Union, Monoline Mortgage Lender, or Trust Company, the borrower is free to do what is best for them.

Myth #4: The Lowest Rate Is Always The Best For Me – BUSTED

Everyone loves to get the lowest mortgage rate. However, in many cases, the lowest rates come with a lot of strings attached and fine print. The lowest rate today may mean higher costs if you want to break your mortgage, refinance, or even sell your home. It is usually best to have the best rate with the best terms for your own unique situation.

Myth #5: I Must Renew With My Current Lender – BUSTED

Upon the mortgage renewal date, you are free to shop around for the best rate and terms. In many cases, the new lender will pay for your legal and transfer fees. We recommend you start this process 4-6 months before your mortgage renewal.

Myth #6: My Credit Score Will Suffer If I Shop Around – PLAUSIBLE

In general, having your credit score checked many times isn’t a good thing. However, when you are shopping for a mortgage, multiple inquiries for the same purpose within a certain period of time are generally counted as one inquiry.

Myth #7: Borrowing My Down Payment Is Prohibited – BUSTED

While many lenders will not allow a borrowed down payment, Canada’s default mortgage insurers do have a program. You may borrow 100% of your down payment and closing costs, as long as the repayment of the borrowed funds still allows you to qualify.

contact form (1)

  • Contact Information

  • About You (optional)

27 Sep

Purchase Plus Improvements

General

Posted by: Peter Paley

September 27, 2023

https://peterpaley.com/purchase-plus-improvments-mortgages/

Purchase Plus Improvements is an excellent but underutilized program, especially in our Manitoba real estate market.

The program allows a homebuyer who is applying for an insured mortgage (usually less than 20% down) to include up to $40,000.00 of home renovations or improvements in the mortgage.

Typically the eligible types of improvements are cosmetic (kitchen, bathrooms, flooring, paint), mechanical (furnace, air conditioning, electrical), and exterior maintenance (windows, doors, roof). Ineligible improvements would typically be foundation repairs. The general rule is the renovation should add value to the home.

Why is the program underutilized? This could be stemming from a number of different factors;

1. The program is generally not well known.

2. The renovation quotes need to be provided upfront at the time the application is submitted for approval. This means that the homebuyer needs to have the quotes done even before writing an offer.

3. The real estate market over the last 10 years has not allowed for the required time to get quotes and due proper diligence on a home purchase. The market has heavily favored sellers, and multiple offers were almost always expected.

4. The purchase plus process adds more work for everyone. The REALTOR will need to spend more time helping arrange quotations, the mortgage broker will need to do more calculations and follow-ups with the clients post-funding, and the lawyer will also need to hold the renovation funds in trust until they are completed, inspected, and approved by the lender.

5. The homebuyer will need to have the financial means to cover the cost of the renovations to completion because the lender won’t allow the renovation funds to be released until they are completed, inspected, and approved.

It may be a bit of a hassle. However, in today’s changing market where interest rates and home prices remain higher, mortgage qualification policy remains stagnant and unhelpful, and the market balances itself and dare say moves to a buyer’s market, the Purchase Plus Improvements Program is an EXCELLENT way for a homebuyer to get an improved home they want in a location they want.

Contact us for more details!

#mainstreammortgages #purchaseplusimprovements #mortgagebroker #renovations #firsttimehomebuyer

27 Sep

FALL MARKET UPDATE

General

Posted by: Peter Paley

Fall Market Update.

As you may have heard, The Bank of Canada opted to maintain its policy rate at 5% as of September. The recent rate hikes over the spring and summer have slowed the housing and mortgage markets as potential buyers were unsurprisingly spooked by the rise in mortgage rates. More recently, fixed-rate loans have become more expensive because of the rise in longer-term interest rates. As a result, housing affordability became a bigger hurdle and led to a slight decrease in home prices by 6% in major markets over the summer.

With The Bank of Canada currently maintaining the 5% policy rate, many hope this will be the peak in overnight rate changes. If so, homeowners and potential buyers will be granted some breathing room. We will find out more with their upcoming announcement on October 25th.

As we turn the corner into Fall and start looking ahead to the coming year, analysts are forecasting stronger housing markets. The expectation is that The Bank of Canada will gradually cut interest rates by mid-year, allowing potential buyers to better navigate their affordability.

As the supply shortage continues, new listings are likely to rise and provide much-need inventory. As we move into 2024 and start to see interest rates decrease, motivated sellers will move off the sidelines and housing demand is expected to be resilient.

For anyone who is thinking about purchasing this season, it is important to get pre-approved to guarantee your interest rate for 90-120 days while you shop the market. This way, you will avoid being impacted by potential rate changes and can properly estimate your budget for mortgage costs. Plus, pre-approval will indicate to the seller that you will not have issues obtaining financing (assuming nothing changes between now and the purchase with your job, savings, etc.), which is key during the current economic landscape.

To help you make the best decision possible, download the My Mortgage Toolbox app to determine what you can afford, and what your mortgage would look like at various interest rate levels.

You can also reach out to us today for unbiased advice if you have any concerns, or questions or just want to get started on your pre-approval!

contact form (1)

  • Contact Information

  • About You (optional)

22 Sep

Construction Mortgages & Building A New Home

General

Posted by: Peter Paley

https://peterpaley.com/home-building-construction-mortgages/

Let’s talk about building a new home. Over the last few years, it has been a very stressful process. Global supply chain problems, long delays, and rising interest rates unquestionably put much financial strain on many home buyers. In Winnipeg, homebuyers walked away from their contracts due to higher interest rate costs and not being able to qualify for the mortgage any longer.

The real reason I wanted to post about this today was that we are now offering a 12-month rate hold for new construction mortgages that are default mortgage-insured & done on a completion basis. At the time of writing, we can offer 5.89% for a 5-year fixed-rate mortgage and hold it for 12 months.

This is more of a pre-qualification, rather than a pre-approval, meaning, that will will get the lender to approve you for the purchase now, however, the onus will be on the borrower to re-qualify 120 days before possession.

There are two kinds of construction mortgages. The “Completion” and “Construction Draw”.

The completion mortgage means that you are going to give your builder a 5%-10% deposit, get qualified for the mortgage, pick out all your finishes, and the builder will have a house ready for you in 4-12 months. 100% of the deposit will form all or part of your down payment and You don’t have to really do anything else but update a couple of required mortgage documents closer to the possession date.

The construction draw process is more complicated, and involved and there is a greater chance of errors and more risk to the lender. In fact, many lenders aren’t even considering these applications any longer. The builder will divide the contract into usually 5 components so that the build can be funded as the home is being constructed. The 5 stages or draws are:

1. Land Advance (100% for insured files and 50-75% for conventional)
2. Basement/Foundation (15-17% complete)
3. Framing & Roof (30-35% complete)
4. Lock-up (60-67% complete)
5. Completion (97-100% complete).

The lender won’t provide any of the required funds upfront with the exception of the land advance. The borrower will need to stay one step ahead of the contractual payments. This means the borrower will need enough funds to for example fund the entire cost of the foundation/basement. Once that stage is complete, the lender will request an appraisal at the borrower’s expense to confirm the basement is completed. This will happen at each stage.

Sounds pretty easy right?

The challenge that we run into a lot is that the builder’s contract doesn’t always match up to the prescribed draw schedule set out by the lender and the insurers. This means that the borrowers will need to be able to have the means to fund any contractual shortfalls. Your mortgage professional should be able to identify the contractual shortfalls using a simple spreadsheet. However, more shortfalls can happen due to extra & unforeseen costs, weather delays, and as we’ve seen through the pandemic, massive cost increases in supplies. Most lenders will want to see the financial means to not only qualify for the mortgage but to also have a 20-25% cost overrun provision. The reasons for this were listed above but the biggest cost overrun in most home builds is upgrades. Yes, when a new home buyer walks into the lovely showrooms to pick out cabinets, floors, countertops, and tiles, what one can afford doesn’t look nearly as nice as what one cannot afford.

If you are interested in going through the building process whether a completion or a construction draw we would like to help!

contact form (1)

  • Contact Information

  • About You (optional)

20 Sep

Alternative Lending/ “B”- Lending

General

Posted by: Peter Paley

Alternative Lending/ “B”- Lending

The alternative lending space was truly formed from the adage “Necessity is the mother of invention”. Unlike, the prime/”A” lending space where the Banks and Credit Unions prefer to lend, alternative lenders like to particularly lend to borrowers who don’t fit the small box set out by the Banks.

A stigma may have formed over the years that “B” lending was only for people with bruised or damaged credit. Although bruised/damaged credit is one of the areas served by alternative lenders, it’s becoming moreover an excellent and popular option for the self-employed, luxury home market with values over $1.5MM, rental property investors, and commissioned salespeople.

About “B” Lenders

Generally, the mindset of the “B” lender is different. Whereas the “A” lender focuses mainly on the borrowers (income, credit score, down payment, net worth), the “B” lender on the other hand is focused on the property (Value, saleability, condition, loan-to-value, and location, location, location).

The alternative lender typically will want a minimum of 20% down or equity (more depending upon the application). They like major urban markets where there is a minimum population of 50,000 or more, and most importantly they want the property to be in good to excellent condition.

Lending rates are usually 1%-2% higher than the banks to offset the risk to the lender and there is also a 1%-3% lender fee which is used to help compensate the lender and the mortgage broker. The documentation requirements are generally the same as an “A” lender.

 

Clients Who Fit Best With Alternative Lenders

A typical client profile for a “B” lender is

contact form (1)

  • Contact Information

  • About You (optional)

:

1. High value property $1,500,000+

2. Properties to be held in company/corporate names

3. 2nd mortgage products HELOC & Credit Card.

4. Bad credit

5. Self-employed borrowers without a 2-year history in business or low-claimed income.

6. Previous bankruptcy or consumer proposal (even double bankruptcy)

7. Can use mortgage proceeds to payout an existing bankruptcy or consumer proposal early.

8. Commissioned Sales People

9. Rental property portfolios under 10 properties.

As banking regulations tighten along with the bank’s credit and risk policies, “B” Lenders are available to find the right lending solutions.

#mainstreammortgages #alternativemortgage #mortgagebroker #selfemployed #badcredit

13 Sep

Countertop Materials for Your Kitchen

General

Posted by: Peter Paley

Countertop Materials for Your Kitchen.

They say the kitchen is the heart of every home, and what better way to treat this important space than by ensuring you have all the right materials?

When it comes to your kitchen, there are a variety of options for cupboards, appliances, and countertops. What you may not realize, is how much you actually utilize your countertop space and the importance of choosing the right material for your cooking habits and style.

If you are considering a reno, or looking to purchase a new home, understanding the pros and cons of different countertops can ensure you make the best choices.

  • Granite: A popular and durable option, granite comes in various colors and patterns. Along with being strong, it is resistant to heat and abrasion. However, it is a premium-price material and requires regular sealing every three to five years due to its porous nature.
  • Marble: One of the more high-end options, similar to granite, marble provides a much-needed level of uniqueness in its patterns as well as holding up well to heat, cracking, and chipping. On the other hand, marble is more sensitive to scratches and staining and should be resealed at least once per year to improve longevity.
  • Quartz: One of the most durable and maintenance-free countertop options, quartz comes in various options from vibrant to natural finish and is nearly indestructible under standard home conditions. Not only is quartz scratch-resistant, but it can also resist stains, bacteria, and heat damage.
  • Laminate: If you’re looking for a more budget-friendly option, laminate can be a great way to go. Not only can laminate be made to resemble stone, granite, or even quartz at a fraction of the cost, but it is also easy to clean and maintain while being resistant to mold, mildew, and stains. However, bear in mind that laminate is quite sensitive to heat and can be prone to peeling or scratches.
  • Butcher Block (or wood): Butcher-block wooden countertops have a great natural look while being a hardworking surface great for food prep and highly resistant to heat. However, as wood is quite porous it is important to properly seal and oil your countertops to reduce bacteria and moisture susceptibility.
  • Stainless Steel: Opposite the natural look of butcher-block designs, stainless steel provides a much more industrial kitchen vibe. Stainless steel has become extremely appealing over the years due to the ease of wiping it down and its ability to inhibit bacteria buildup. However, not without its limits, stainless steel has a tendency to result in lots of water spots and fingerprints on its smooth surface. It is also more pricey than other options, but being impervious to heat damage has its charms.
  • Soapstone: A wonderfully stain-resistant option, soapstone is entirely non-porous in addition to being heat and bacteria-resistant. However, to maintain this natural stone it needs to be treated regularly with oil and care must be taken to avoid surface damage such as scratches and dents.
  • Ceramic Tile: Tile is an inexpensive option for your kitchen (and bathroom) counters, which is easy to install by an experienced do-it-yourselfer. Not only is tile inexpensive, but it comes in a variety of options and colors as well as being hard, durable, and resistant to heat. Keep in mind, the sizing of your tiles as smaller tiles will be more difficult to clean as opposed to larger settings. Tile is also more vulnerable to cracking, though relatively easy to replace a broken piece. It is also important to note that grout can be prone to staining.

Regardless of what type of kitchen you are designing or moving into, knowing how to care for your countertops can help increase your kitchen longevity and enjoyment!

 

contact form (1)

  • Contact Information

  • About You (optional)