Miss Mortgage

Are you applying for a mortgage in Medicine Hat?

Are you applying for a mortgage in Medicine Hat?    Let Mortgage Edge help you with your mortgage needs in Medicine Hat, Alberta.  

Mortgage Edge is a licensed mortgage originator, comprised of a large team of highly trained mortgage professionals, with extensive knowledge and exposure to the Canadian Mortgage Market for the past 25 years. With extensive backgrounds in Banking, Financial Consulting, Real Estate, and other related fields, our mortgage team will not only take the time to arrange a mortgage for you, but will also ensure that the financing we arrange is best suited to your individual needs.

Mortgage Edge representatives offer you unbiased professional personalized service for your mortgage requirements, with the most competitive rates, and flexible financing options.

Our service to you is FREE as a qualified borrower*, and we work with you from the time we arrange a pre-approval for you, right up until the closing day of your mortgage. Our team is compensated by the lender that we ultimately close your mortgage with, much like your insurance broker does when arrangements are made for your home or auto insurance.

By dealing with us at Mortgage Edge, we help you save on two of your most valuable commodities in today's fast paced environment, TIME and MONEY. The best part about all of this is we do all of the work for you during the entire process.

We have access to over 35 different lenders, including the banks, trust companies, insurance companies, self-insured lenders, and many more. This leverage allows us to negotiate for the BEST mortgage product and rate for you. In fact in many cases, we end up negotiating a better mortgage for you with your own financial institution, and the best part about it is, it costs you nothing for our service since they pay us.

This post was written by Elizabeth Blair at Mortgage Edge.  Please visit my website at:

www.missmortgage.ca

Please contact Elizabeth Blair at   403.878.0303 or by email at eblair@mortgageedge.ca

to discuss your mortgage requirements.

 

 

Licensed in Alberta Canada!
Effective August 24, 2011 Mortgage Edge is now licensed in ALBERTA. I am able to service clients who need to buy a home, pull out equity and re-finance. Please call me on my Alberta number if I can assist you 403-878-0303. Of course I am still servicing Ontario residents, as my Ontario license is still valid there. My Ontario line remains the same 905-510-5785.

Best Variable Rate

Variable rate at *Prime Rate minus 0.90% is available now.    Call me to reserve this rate.

This blog post was written by Elizabeth Blair on August 8, 2011.

Elizabeth Blair is a Licensed Mortgage Agent with Mortgage Edge in Richmond Hill, Ontario.   Elizabeth services mortgage clients in Mississauga and all over the Greater Toronto area.

You can contact Elizabeth directly by phone at (905) 510-5785

by email at eblair@mortgageedge.ca

or you visit her website at: www.missmortgage.ca

Elizabeth is licensed with the Financial Services Commission of Ontario and is also a Member of IMBA (the Independent Mortgage Brokers Association of Ontario) www.imba.ca

Agent Lic # M08005880

Brokerage Lic # 10680

Head office is located at: 15 Wertheim Court, Suite 210, Richmond Hill, Ontario, Canada.

*rate is available to those applicants who are approved and qualify with lender offering this rate.

 

 

 

Mortgage Insurance Overview

As a first time homebuyer, you may have heard that you may have to pay a mortgage insurance premium.

This mortgage insurance will be required if your down payment is LESS than 20%. Remember that lenders do reserve the right to insure your mortgage even if your down payment is greater than 20% and this decision is often based on the risk associated with the financing. The key players that provide mortgage insurance in Canada today are CMHC, Genworth Financial Canada and Canada Guaranty.  The newest insurer to join the industry is Canada Guaranty.  

As new mortgage insurers join the industry, they are required to apply to OFSI (Office of the Superintendent of Financial Institutions) to become “mortgage insurers” in Canada.  Canadians would certainly welcome more competition and choice, as it would help lower insurance premium costs for Canadians who want to purchase a home and who need mortgage insurance.

Here is a sample breakdown to help you understand how a mortgage insurance premium is calculated for a homebuyer who wants to purchase a home with a 5% down payment using premiums published by CMHC:

Price of home being purchased (A) $242,000.00

5% down payment (B)  $12,100.00 

Financing required (C)  $229,900.00

Mortgage Insurance premium (2.75% of C) (D)  $6,322.25

Amount advanced by lender (E)  $236,222.25

The lender who is reviewing your mortgage application (once approved) will include the mortgage insurance premium on your mortgage commitment as part of your total mortgage loan and this is total amount is repaid over the term of the mortgage loan.

Here below is a table that gives an idea on what the mortgage loan insurance premium charges are based on various down payments levels:

Financing Required  /  Insurance Premium

Up to and including 65%  /  0.50%

Up to and including 75%   /  0.65%

Up to and including 80%   /    1.00%

Up to and including 85%   /     1.75%

Up to and including 90%    /   2.00%

Up to and including 95%   /   2.75%

Here are some questions I often receive:

Why do I need mortgage loan insurance? It is the lender who requires the mortgage loan to be insured.   The mortgage lender passes along the cost of insuring the mortgage to the consumer. 

Is mortgage loan insurance mandatory?  No. There are a few mortgage lenders, on the market, who may provide you with mortgage financing without mortgage loan insurance but there will most certainly be a much higher interest rate offered as well as other administrative fees added to the mortgage loan amount. These other mortgage lenders can be accessed through the mortgage broker community.

Who does mortgage loan insurance protect?  The mortgage lender requires mortgage loan insurance because it protects the lender in the event that the borrower, for some reason, cannot pay their mortgage.

Are mortgage loan insurance premiums taxed?     Yes.   Even though the HST (Harmonized Sales Tax) was introduced on July 1, 2010, this new tax structure has not changed taxation on the mortgage insurance premiums.  The tax paid on the insurance premium amount is still 8%.  Since the 8% tax amount is NOT included in the total loan amount, by the lender, a home buyer would have to pay this sales tax on their closing date.  This amount would be collected from the home buyer, by the lawyer, and would be remitted directly to the government.

This blog post was written by Elizabeth Blair on June 28, 2011.

Elizabeth Blair is a Licensed Mortgage Agent with Mortgage Edge in Richmond Hill, Ontario.   Elizabeth services mortgage clients in Mississauga and all over the Greater Toronto area.

You can contact Elizabeth directly by phone at (905) 510-5785

by email at eblair@mortgageedge.ca

or you visit her website at: www.missmortgage.ca

Elizabeth is licensed with the Financial Services Commission of Ontario and is also a Member of IMBA (the Independent Mortgage Brokers Association of Ontario) www.imba.ca

Agent Lic # M08005880

Brokerage Lic # 10680

Head office is located at: 15 Wertheim Court, Suite 210, Richmond Hill, Ontario, Canada.

 

 

 

What is a Mortgage Bridge Loan?

Sometimes when you buy a home, the closing date for the home you are selling does not match the closing date of the house you are buying.   Some of the typical reasons for a difference in closing dates might be:   you want to get some renovations completed on the home being purchased before moving into it or perhaps you could not get the seller to give you the closing date that you really wanted.  So if the closing date of the home you are buying is before the closing date of the home you have sold, you will need a bridge loan.  

Let’s use a real example so you can understand how a bridge loan amount is derived:

Price of the home being purchased:     $450,000

Less:     Amount being mortgaged:    $360,000

Less:     Deposit you give to the Realtor:   $10,000

Equals:     $80,000   Bridge Loan amount

The bridge loan amount is really your total down payment, less your deposit because the lender is advancing the rest of the mortgage money on the closing date for the home you are purchasing.

Here is how the interest cost is calculated, for a sample bridge loan amount:

Client is buying a new house - closing date = April 30, 2011

Current home is not closing until = June 25, 2011

Clients need a Bridge Loan to cover them for 56 days until current house sells.  

Bridge Loan amount required is $80,000.   Lender’s interest rate = *prime rate (3.00%) plus 4%.

Bridge loan  $80,000   X   0.07 (interest) =  $5,600

$5,600  divided by   365 days =   $15.3424 (per diem cost)

$15.3424   X   56 days =  $859.17

For a Bridge Loan advance that is greater than a certain amount, and is greater than 45 days, the lender will sometimes ask that the bridge loan be secured by way of a collateral mortgage on the property being sold.   If a collateral mortgage is required, lawyers will often charge extra to do this (estimated at $500 and up).  Some lenders will also charge a bridge loan “set-up fee”, and some lenders do not.   Remember also that a property sale must be firm before a lender will arrange a bridge loan for the borrower(s).  And finally, lenders will not advance more than 90% of the value of the property being sold.

This blog post was written by Elizabeth Blair on May 19, 2011.

Elizabeth Blair is a Licensed Mortgage Agent with Mortgage Edge in Richmond Hill, Ontario.   Elizabeth services mortgage clients in Mississauga and all over the Greater Toronto area.

You can contact Elizabeth directly by phone at (905) 510-5785

by email at eblair@mortgageedge.ca

or you visit her website at: www.missmortgage.ca

Elizabeth is licensed with the Financial Services Commission of Ontario and is also a Member of IMBA (the Independent Mortgage Brokers Association of Ontario) www.imba.ca

Agent Lic # M08005880

Brokerage Lic # 10680

Head office is located at: 15 Wertheim Court, Suite 210, Richmond Hill, Ontario, Canada.