Miss Mortgage

Rate increases coming

Bond increases, in recent days, has placed great pressure on lenders to raise fixed rates.  Several lenders have already started to announce fixed mortgage rate increases.  

Contact me asap if you need a mortgage pre-approval to lock into a mortgage rate now to hold a rate for 120-days.

Elizabeth Blair, Mortgage Edge
Phone:  (905) 510-5785
Fax:   (905) 858-0103
Email:   eblair@mortgageedge.ca
Website:   www.missmortgage.ca

Mortgage + line of credit: is it for you?

Home owners who have lots of equity in their house, might be looking for ways to get access to that equity without having to re-finance their house every time a need arises for some additional money.

A mortgage with a line of credit portion is a great product for some.   Here are some typical reasons why you might want to get access to your home equity:   buy investments, stocks, bonds, RRSPs, renovate your home, pay for education costs, or other reasons.

The diagram below shows a total home value of $380,000 divided into three sections:  the top portion means that 20% of your home value must remain as equity and cannot be financed.  The middle portion represents the line of credit portion.   The line of credit portion can go up to 80% of the value of the home.   The bottom portion is your actual mortgage loan portion today, that you decide to convert over, when you move into this product.   

Using the example of a home owner who has a home valued at $380,000......This client has a mortgage balance right now, with a lender, at $210,000.   By moving into the mortgage + line of credit product, the current mortgage amount of $210,000 is set up as either a FIXED mortgage, or a VARIABLE rate mortgage.

The borrower can then use anything over this set mortgage amount, all the way up to 80% of the home value.

  Home Value for this illustration is $380,000

	20% cannot be financed
	$ 94,000 MAX Line of Credit portion   Variable rate **Prime + 1% **2.25% + 1% = 3.25% Line of credit can be increased up to 80% of the value of the home
	Mortgage balance today $ 210,000   Variable rate 5 year term  Or Fixed Rate 2, 3, 4, 5, 7, 9 and 10 year terms   5 yr fixed = 3.69% variable = **Prime 2.25% + 0.80% 3.05%

 

It is important to mention....... this kind of mortgage product requires a very disciplined borrower as reckless spending or improper investing strategies, with the line of credit portion, could have a very negative outcome:  a higher debt and possibly the inability to re-pay the debt.  

This blog was written by Elizabeth Blair, 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

Lic # M08005880

Brokerage Lic # 10680

NOTE:    Mortgage rates are effective as of May 17, 2009.   **The variable rate amount can go up or down depending on current posted Prime Rate.  Mortgage rates are subject to change without notice.  

Business owners:: Lease your depreciating assets

As our lending market has changed and we continue to face the challenges of a tighter lending market, many mortgage lenders and finance companies have closed and some individuals and business owners are finding it harder to get financing.   Mortgage Edge is well positioned to manage the challenges of a tighter lending market.  With an excellent reputation among lenders and finance companies, and preferred status, we continue to have access to all lenders as well as other complimentary products. 

We now offer a leasing option to business owners.

You already know how important it is to conserve working capital, allowing that cash to be used for other purposes….leasing does provide this straightforward solution.  Access to funds is a continual challenge to companies and business owners.  Leasing ensures that a business owner can keep their existing credit lines free and clear and preserves future bank-borrowing ability. 

Here is what I can access for a business owner:

1) Leasing:  the leasing of small to mid-ticket equipment financing (ranging from $2,000 up to $10 MILLION).  Leasing is available for most types of equipment and machinery.   Did you know that leasing is used by up to 80% of all companies to acquire some or all of their depreciating assets?  With an approval ratio of 85% on all applications received, this is something you should consider.

2) Sale and Lease-Backs:    (from $75,000 and up).   This allows businesses to free up the capital that is currently tied up in equipment and machinery and to then use that same capital for company expansion and more important areas like production, marketing, research and development.  Leasing allows a business owner to only buy what appreciates in value and to lease that which depreciates in value.  Here, below, is a list of the kinds of industries we support as well as the types of assets that we can service through this program:

Industries	Asset Types – New and Used
General Business	Information Technology	Warehousing	Trailers
Manufacturing	Software	Food Processing	Marine
Education	Telecommunications	Production	Receivables
Communications	Medical / Dental	Energy Equipment
Professionals	Office Automation	Energy Retrofits
Medical / Dental	Light Industrial	Golf Course Equipment
Transportation / Logistics	Industrial Power	Textile Equipment
Wholesale and Retail	Office Furniture	Construction
Business Services	Printing	Mining
Public Sector	Manufacturing	Oil Field
Government	Material Handling	Waste Handling
Mining	Aircraft	Aircraft
Construction	Heavy Industrial	Titled Vehicles

This blog was written by Elizabeth Blair, 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

Lic # M08005880

Brokerage Lic # 10680

Get cash on closing day!

Purchasing a house means that lots of money is going to be put into the whole process.  There is a mortgage option called a "cashback mortgage".   On closing date, you can get an amount of money advanced to you, by the lender, and have this cash available for other things, like appliances, new furniture, renovations.   Here is a breakdown of how a cashback mortgage would look for a $350,000 purchase.   This cashback option is only available for home buyers who already have a downpayment to buy their home.....in other words, you cannot use that cashback to cover any of your downpayment.

Purchase Price	$350,000.00
Mortgage Rate	Closing in 30 days or less	Cashback on closing day	Closing in 30 - 120 days	Cashback on closing day
4.19%	2.00%	$7,000.00	1.60%	$5,600.00
4.14%	1.80%	$6,300.00	1.40%	$4,900.00
4.09%	1.60%	$5,600.00	1.20%	$4,200.00
4.04%	1.40%	$4,900.00	1.00%	$3,500.00
3.99%	1.20%	$4,200.00	0.80%	$2,800.00
3.94%	1.00%	$3,500.00	0.60%	$2,100.00
3.89%	0.80%	$2,800.00	0.40%	$1,400.00
3.84%	0.60%	$2,100.00	0.20%	$700.00
3.79%	0.40%	$1,400.00	0.00%	$0.00
3.74%	0.20%	$700.00	0.00%	$0.00
3.69%	0.00%	$0.00	0.00%	$0.00
Mortgage rate listed here is effective on May 7, 2009.

This blog was written by Elizabeth Blair, 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

Lic # M08005880

Brokerage Lic # 10680

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

Mortgage Rate Special - effective May 5, 2009

21-months at 2.90% and you can move into the lender's best 5-year fixed rate at anytime during the 21-month period.

Closing date:   Mortgage deal must close by May 29, 2009.

Insurance:     Only insured mortgages (insured with CMHC).

Type of Mortgages:   Purchases, mortgage switch/transfer, or re-finance business.

This blog was written by Elizabeth Blair, a licensed Mortgage Agent with Mortgage Edge in Richmond Hill, Ontario. 

Elizabeth services mortgage clients primarily 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

Lic # M08005880 / Brokerage Lic # 10680

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

Frustrated with lender document requests?

Are you buying a house and maybe just totally frustrated now, with your lender, and all of their requests for more documents?

Here is one area, I hear about the most.....let me shed some light on a popular question about the whole requirement to provide “proof of down payment” and the real reasoning behind it.

All Canadian banks, have implemented very strict policies to cover this subject called, “Anti-Money Laundering”.  These policies have recently been strictly enforced and monitored because of “mainly” the back-door terrorist financing.  With this in mind, you can probably see why there is such vigilant watch placed on the movement of money, especially any border-to-border movement.  Canadian laws have been put into place to ensure all banks and lenders comply and that they all have consistent standards to ensure that questionable activities and money transfers cannot occur. 

As you know, purchasing a house requires the movement of a very large amount of money and therefore, the monitoring of mortgage funds, also falls under that same strict scrutiny.  The lender will always need to know where the funds came from, where the funds reside now, and what is the exact ownership of those funds.

As long as a borrower can provide legitimate documents (bank statements, investment accounts, and other proof) that they have sufficient funds, here in a Canadian bank account or investment account, to satisfy the down payment and the closing costs, then a lender is fine with this.  

Here is what a mortgage lender will typically ask for:

If you are pulling funds from an existing savings or chequing account, the lender will want to see print-outs, with your full name and address, bank name, and account number, going backwards from the current date.   That account should show your down payment plus your closing costs there, and that these funds have been accumulated there.   If there are large transfers, into your account, these will need to be explained to the lender.

For example:   if a lender sees a large deposit of say $120,000 going into your bank account, the lender has the right to ask where it came from and be prepared to even go after additional documents to prove the movement of the money.   Lets say, you have recently moved to Canada, from the USA.  You sold a house in the USA, and you had a $120,000 deposit made into your bank account (from your sale proceeds).  This $120,000 shows up on your 3-month bank statement window print-outs.  Yes, the lender can ask you to provide the proof of the sale document (a copy of the sale agreement) and perhaps even a copy of the lawyer’s statement of adjustments which would clearly demonstrate what funds you would have left over from the property sale.

If you are pulling funds out of your investment accounts, the lender may want to see copies of those investment accounts.

If you are pulling funds out of an existing RRSP account, under the government Homebuyer’s Plan, you should provide a copy of the RRSP statement, plus a copy of the completed and signed RRSP withdrawal form.

As frustrating as the documentation process may seem to a borrower, it is really part of the extreme due diligence that lenders have had to put into place to protect their mortgage “book of business”.  It is best to fully co-operate with your banker or broker and provide the documents that are being requested to ensure a smooth financing process.

This blog was written by Elizabeth Blair, 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

Lic # M08005880

Brokerage Lic # 10680

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