For most homeowners, mortgages take a considerable chunk of their paychecks. Making sure your budget is up to date is important to ensure monthly cash flow.

In simple language, mortgage refinancing is getting a new mortgage to replace an existing one. It has several perks when taken at the opportune time and for the right reason. In some cases, like when you have too much debt or a bad credit score, refinancing can be risky.

When should you then consider mortgage refinancing? Here are a few good examples:

To Take Advantage of Low-Interest Rates

Breaking a mortgage contract can attract prepayment penalties. It’s okay to be cautious about the consequences, but it’s essential to look at the bigger picture. A lower rate may not always put you financially ahead in the long run.

Your lender may charge a penalty equivalent to three months’ interest if you terminate a variable rate mortgage. With a fixed-rate mortgage, your penalty will either be the interest rate differential penalty (IRD) or three months’ interest. A mortgage refinancing expert from  can assess your situation and advise if refinancing makes sense.

To Renovate Your Home

Home renovations can increase the market value of your home. You are able to refinance your mortgage to pull out equity to update your kitchen, bathroom, or even replace your roof. Talk to a mortgage professional to be sure that this is the right decision for you.

To Consolidate Debt

Life can be frustrating when you have several high-interest debts. You may have credit card bills, a car loan, and a line of credit at the same time.

If you have substantial equity in your home, you can refinance your mortgage and use the money to pay the debts. One monthly payment is more manageable.

To Increase Your Monthly Cash Flow

As we have discussed, it’s sometimes wise to refinance to a mortgage with lower interest. It can potentially reduce your monthly installments, meaning you’ll spare some dollars every month.

If you are continually struggling to meet your economic obligations, refinancing may free up some cash.

Applying for Refinancing

If you’re considering refinancing your first step should be to call a mortgage broker. They will discuss with you :

1. Whether you need the loan and if refinancing suits you
2. Monthly repayments
3. Your credit situation
4. The associated costs

If refinancing is a fit for your situation, your mortgage broker will help you with the next steps in the process.

Mortgage Refinancing in Edmonton

Mortgage refinancing is beneficial to the borrower in some select instances. Lower interest rates should not be the only inspiration to enter into the arrangement. There can be penalties involved, and most likely, you will be extending your loan period.

If you are looking for a mortgage refinancing service in Edmonton, Jamie Arthurs Mortgages will assist you. You can visit our website to learn about our services in more detail.

Talk to us today, and our experienced team will address your concerns about mortgages and refinancing.

When it’s time to purchase your first home, taking care not to miss any steps can help smooth out the process and save your money and time. Finding the ultimate checklist can help you remember all necessary steps and expedite the process of buying your first home. Let’s take a look at some questions you should consider. Contact us to lean more.

Is Homeownership Right for You?

This may seem obvious, especially if you have your savings ready and are already perusing listings in Alberta. However, it’s critical to break down the question into several parts that affect buying your first home.

• Are you financially stable? Take a critical look at your income, expenses, and debts and consider what additional expenses could mean for your financial situation.
• Are you financially disciplined enough to handle a large purchase? Buying your first home could mean adjusting your lifestyle to ensure that you meet all monthly payments and avoid accumulating more debt for several years.
• Are you ready to spend on home maintenance and repairs? The state of a home depreciates over time. You’ll need to spend on the maintenance of your compound, contribute to homeowner’s association fees if necessary, and also update broken and worn-out appliances.
• Are you ready for the permanence of homeownership? Buying your first home takes time and repaying your mortgage could take up to 30 years. It’s critical to consider if you’re ready for that level of commitment.

Do You Have the Right Support?

Buying your first home isn’t a solo project. It would help if you had the assistance of several experts.

• A mortgage broker to help you find an ideal lender to get you pre-approved and guide you through the home buying process.
• A real estate agent to help you find the best deal and negotiate the home’s price (especially if repairs are required) when buying your first home.
• A real estate lawyer to help you close the transaction.

Do You Qualify for the First Time Home Buyers Credit?

Buying your first home is a costly venture. Closing costs, home inspection fees, legal fees, and insurance payments can quickly add up. You can seek relief from some payments through the first-time home buyer’s tax credit (HBTC). This a tax rebate from the government that is non-refundable and must be claimed within the first year of purchase. You can receive up to $750 to make your life easier.

What Type of Home Do You Want?

Before you start shopping for a home, there are some things to consider.

• How long would you like to live in that house? Five, ten, fifteen, or even thirty years?
• What is the neighbourhood like? Where is the house located? Is it close to your workplace?
• What is the size of the home? Is it a condo, a bungalow, or a duplex?

Tips for Managing Your Mortgage

Before you sign a contract for a mortgage, consider the following:

• A structured financial plan and monthly budget will help you buy a house within your means
• Consider the impact of increased interest rates on your mortgage payments
• Can you negotiate the price of the home and the terms of your mortgage?

Buying Your First Home with Dominion Lending Centres?

With a Dominion mortgage broker, you can scrutinize all the details of your mortgage application, get pre-approved, and also initiate the home buying process. We have walked several first-time homeowners through the process and would gladly help you too. Contact us today for assistance with your first home in Edmonton.

5 Things to Know Before Buying a Rural Property.

As cities continuing to grow bigger and busier, a rural home beyond those limits can seem like a dream come true! However, before you dive into country living, there are a few things you should know! Especially, how different it can be to qualify for a mortgage.

1. Check The Zoning

When it comes to buying rural property, it is important to check how the property is zoned. This is vital! Zoning will determine how you are able to use the land, as well as the types of buildings that are allowed and where they can be located. Is the property zoned as “residential,” “agricultural” or perhaps “country residential”?

Zoning could affect the lenders available to you and what you qualify for, as well as what you can do with that property. Differences in lending and foreclosure processes, has caused some lenders to be hesitant with financing mortgages in agricultural/country residential zones.

2. Property Boundaries

Once you have determined how a property is zoned, it is important to look at the land. Requisitioning a survey early in the process will help mark the exact boundaries of your property to avoid future disputes. This is also a good time to get an appraisal done on the land and its value.

3. Considering the Land and Your Mortgage

What many borrowers don’t realize is that land has a drastic effect on mortgage qualification and what you can borrow. In fact, most lenders will mortgage: (1) house, and up to (10) acres of land. If you have a second building or extra land that is being purchased, you will need to consider additional funding on top of your typical 5% down payment.

4. Water and Sewage

When it comes to rural living, many people draw water from private wells and utilize septic tanks for sewage. To ensure everything is safe and in working order, it is a good idea to have an inspection done on the septic tank and water quality as a condition on the purchase offer. Due to the nature of these properties, be advised that inspections may cost more than it would in the city. However, it is important as lenders may request potability and flow tests!

5. Coverage Matters!

Coverage matters, especially when you are living away from the city. When it comes to rural properties, there are two types of insurance that you should consider:

1. Home Insurance: When it comes to rural living, this can be more expensive than city homes due to the size and location of the land and distance from fire stations and hydrants.
2. Title Insurance: This is vital for rural purchases and will protect you from unforeseen incidents with the deed or transfer. It will also alert you to any improper previous use of the property (such as dumping for waste).

If you are thinking about purchasing a home in a rural area, be sure to reach out before you do anything. A DLC Mortgage professional can often recommend a realtor who specializes in rural properties and knows the area best. A DLC Mortgage professional can also help ensure you understand any differences in the mortgage process and qualifying that come with rural purchases.

Written by DLC Head Office Marketing

Original post here.

Getting your first home is a huge financial decision, and as such, finding ways to fund your investment is crucial. Finding the deposit, qualifying for a mortgage, and making consistent monthly payments are all critical aspects to consider. Fortunately, qualifying for a first-time home buyer loan can relieve some of your stress and help you purchase your first home.

What is a First-Time Home Buyer Loan?

A first-time home buyer loan is an incentive by the Government of Canada. Through a shared-equity mortgage, first-time homebuyers qualify for tax-free loans and tax rebates. The federal government launched the program under the First-Time Home Buyer Incentive (FTHBI).

Are You Eligible for a First-Time Home Buyer Loan?

Not everyone is eligible under the FTHBI. You must be a first-time homebuyer who’s never owned a home or owned a home with a spouse or common-law partner but not lived in the house for the past four years. Also, if you have gone through a divorce or broken from a common-law partnership, you may qualify for a first-time home buyer loan.

After passing the above qualifications, you have more considerations. Your wages, investments, and rental income collectively should be lower than $120,000. Note that you can only borrow quadruple this amount, which caps the loan at $480,000.

FTHBI only applies to homes with mortgage default insurance. This insurance applies to all homes where the homebuyer puts a down payment lower than 20%, which is the maximum down payment allowed for homes under first-time home buyer loans.

Why Is It Called a Shared-Equity Mortgage?

In a typical mortgage plan, when you make a down payment for a home, you become the owner of the equity. However, under the FTHBI, the Government of Canada becomes part-owner, and as such, suffers losses and enjoys profits on your home. Usually, the government loans you:

• 5% of the home’s price for a house on resale
• 10% of the home’s price for a new home

What Are the Benefits?

You can save on immediate payments for the down payment and mortgage insurance.

You don’t have to make monthly payments on the loan or pay interest on the loan. However, you have to pay back the loan in 25 years, or if you re-sell your home, whichever event comes first. Unfortunately, the loan repayment is based on the fair market value of the home at the time of repayment or resale. You can pay more or less than you borrowed, depending on the market.

Should I Take a First-Time Home Buyer Loan?

Contacting your mortgage broker can help you determine if you are eligible for a first-time home buyer loan. If you do, your mortgage broker from Dominion Lending Centres can help you weigh the benefits and disadvantages. Contact us today to get started on your journey to home ownership.

A home is one of the most valuable assets you can own financially and on a sentimental level. However, the process of buying a house can be long and tedious, and that’s why many first time home buyers make mistakes. Call us today to get the process started.

One of the main hassles of this process is getting a suitable mortgage lender. Fortunately, these days home buyers can use the services of a mortgage broker to ease the process. Mortgage brokers are professionals that assist clients with origination, negotiation, and processing of mortgage loans.

Here are some ways that a mortgage broker can assist you in securing your first time home buyer mortgage in Edmonton.

1. Help Determine a Suitable Mortgage for You

There are a lot of things that come into play when mortgage applications are being processed. Some of the things lenders consider are:

• Downpayment
• Income (before tax)

• Credit score
• Monthly debt obligations
• Monthly mortgage payments

After all these factors have been analyzed, a mortgage broker will be able to determine whether you can qualify for a first time home buyer mortgage, how much of a loan you can afford, and which interest rate you will qualify for. It’s not uncommon for home buyers to find a house only to find out later that they do not qualify for such a mortgage amount.

2. Access to Multiple Loan Products

Mortgage brokers have working relationships with many banks and lenders. Therefore, you will have access to different mortgage products from a variety of lenders.

This not only makes comparing mortgage products easy but also saves you the time and leg work involved with assessing lenders one by one.

3. Explain the Fine Print

Not all first time home buyer mortgages are created equal. Though interest rate is important, it is prudent that you understand all terms of the mortgage. For example:

• Pre-payment privileges

• Pre-payment penalties
• Portability
• General flexibility

With access to multiple lenders comes options for rates and terms! Your mortgage broker will walk you through your options to find you the most suitable mortgage for your needs.

4. Expertise

Dealing with mortgage lenders can be somewhat challenging as there are many processes and steps involved. However, the expertise a mortgage broker brings to the table will ease the process of your first time home buyer mortgage.

Unlike a loan officer, your mortgage broker is not obliged to promote a particular lender or loan product. Therefore, they will work with you to ensure you get a mortgage that suits your needs.

Get Started with a Mortgage Broker

When choosing a mortgage broker, it is important to work with a credible institution that offers personalized service. Ask for referrals from family, friends, and colleagues then check online reviews.

Do you need assistance in getting a first time home buyer mortgage in Edmonton? Get in touch with Jamie Arthurs for personalized service and years of expertise.

If there’s one thing that has remained consistent over the centuries, it is the pride that comes with living in your own house. However, before you become a homeowner, you must navigate the hurdles of the first time homeowner buying process. Call us today to get the process started!

There are many steps involved in buying a home. And, the process begins long before you begin searching for your dream home. As such, it requires meticulous planning. Read on to find out key steps in the first time homeowner buying process that you need to know.

1. Financial Preparation

Buying a house comes with two major financial obligations. First, you need to part with a down payment, which is usually 5% of the value of the house. Once you start thinking of buying a house, create a savings plan to help you raise the down payment.

In addition to the upfront sum, a portion of your income will also be committed to servicing the mortgage afterwards. As such, it is important to factor in all of your future financial obligations as you prepare to buy a house. This includes credit card balances, bills, new vehicle payments, and unexpected expenses.

Mortgage lenders also look at your debt-to-income ratio and credit score. These two sets of data determine whether you qualify for a mortgage and what rate of interest you will be charged on that loan. As you save for your down payment, set up measures to help reduce other debts and make payments on time to improve your credit score.

2. Choose a Mortgage Broker

Mortgage brokers help guide you through the process for buying your first home and will ultimately lead you to the best mortgage for your financial situation. They will work for you at no cost to you, but only get paid by the mortgage lender if they help you obtain a mortgage.

3. Get a Mortgage Pre-Approval

Once you have started saving for the down payment, set up an appointment with your mortgage broker to get pre-approved before you begin searching for a house. Mortgage pre-approvals ease the first time homeowner buying process in the following ways:

• Gives you clarity on how much you can access
• Ensures you do not waste time looking at houses beyond your range
• Increases your negotiating power
• Helps reduce the closing period
• Prevents you from falling in love with a house you cannot afford

4. Work with a Real Estate Agent

Your mortgage pre-approval is locked in for 90-120 days. To increase your chances of finding the right house within this period, it is advisable to find a realtor. If it takes longer to find the right property, call your mortgage broker to extend your pre-approval.

Some of the benefits of hiring a realtor for the first time homeowner buying process include:

• The networks within the industry will make it easy to find a suitable house
• Their negotiating experience will ensure you get the best deal possible
• Assistance with the paperwork

5. Have the House Inspected and Close the Deal

Before you close the deal on any house you find, have the house inspected to make sure everything is in good condition. As long as your offer is in place with the condition that the inspection is satisfactory, you are able to rescind your offer if needed. If there are minor fixes that are required, you can use this to negotiate the price down or have the seller take care of repairs before you take possession.

Get the Best Mortgage Deal with Mortgage Brokers

Getting the right house starts with a mortgage broker.

Jamie Arthurs Mortgages is a mortgage brokerage that specializes in mortgages for first time buyers and gives you access to the best mortgage rates in Canada. Get in touch with us today for a smooth first time homeowner buying process.

Bank of Canada Holds Target Rate Steady
Until Inflation Sustainably Hits 2%

Dr. Sherry Cooper

Chief Economist, Dominion Lending Centres

The Canadian First Time Home Buyer Incentive (FTHBI) is an initiative that seeks to make it easier for you to own a home, but not everyone qualifies and it can come with some risk. Before deciding to acquire a first time home buyer loan utilizing the First Time Home Buyer Incentive, take time to understand the details. Contact me to learn more.

Do You Qualify for FTHBI?

To qualify for FTHBI, you must be a first time homeowner, have undergone a divorce, or have not lived in a home that you owned with your spouse for the past four years.

On top of this, you must also meet the following criteria:

• Your total household income, which included salaries, investments, and rental income, should be lower than $120,000.
• The maximum amount you can borrow should be four times your qualifying income. Since the limiting income is $120,000, the most anyone can borrow is $480,000. This means that IF your qualifying income is below $120,000, your loan amount will be even lower
• You must have the minimum downpayment ready. For the first $500,000 of a home’s purchase price, the minimum downpayment required to obtain a first time home buyer loan is 5%. However, your total downpayment, even with the incentive, should not exceed 20% of the home’s purchase price.

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How Does FTHBI Work with First Time Home Buyer Loans?

If you qualify, the government will lend you 10% of the purchase price for a newly constructed house or 5% for a previously owned home. The incentive amount can help you settle part of the down payment and mortgage insurance. Fortunately, there are no interest charges upon repayment, and you do not have to make monthly payments. You do eventually have to repay the same share you received through FTHBI, but not until you sell the home or after 25 years – whichever comes first. Still – pretty great!

So, what is the catch? The FTHBI is a shared equity mortgage, which means that the Canadian government shares any losses and gains on the home. The FTHBI repayment is not based on the amount of your first time home buyer loan, but on the value of your home at the time of repayment. Therefore, if your home increases in value, you may pay back more than you borrowed. However, if your home’s value decreases, you pay back less than you borrowed at the government’s loss.

Should You Consider The FTHBI?

Before deciding to apply for the FTHBI, consult your mortgage broker and let them crunch the numbers for you. While this incentive may lower your down payment and improve your chances of qualifying for a first time home buyer loan, it may cost you more in the long run. To find out more about the First Time Home Buyers Incentive in Edmonton, contact Jamie Arthurs Mortgages today.

What Opportunities Do Edmonton Homeowners Have When Their Mortgage is Up for Renewal?

If you are up for mortgage renewal in Edmonton, you may have more opportunities than you realize. When mortgage renewal time comes up, most homeowners don’t bat an eyelash. They say yes, and often pay more than they should. Banks hope homeowners are lazy and will accept the first renewal offer they receive.

Accepting the offer that your current lender gives you for your mortgage renewal in Edmonton without doing more research is not a wise choice. Speaking with an experienced mortgage broker can help you figure out what the best option will be. Depending on the circumstance of your original mortgage, a new bank will cover the costs of transferring the mortgage to them.

What are You Options When It Comes to Mortgage Renewal in Edmonton?

To start, if you have good credit, you have the option to renegotiate better terms with your current mortgage lender. You can go into the bank looking to get a lower rate than what they initially offered you.

Once your current lender has given you their final offer, call a mortgage broker and let them shop around for you. Your first offer for mortgage renewal in Edmonton does not have to be the one you accept. You might be surprised what an experienced mortgage broker can find for you.

Mortgage renewal time is also an opportunity to restructure your finances, maybe the timing is right to take out more money to invest for retirement, or extend the amortization to lower your payments.

You Have Choices – Take Advantage of Better Terms

When it comes to mortgage renewal in Edmonton, you have choices. Don’t just be OK with your bank’s first offer. At renewal time, you should talk to a mortgage broker to make sure you’ve considered all options available to you.

Jamie Arthurs Mortgages can help you with your mortgage renewal in Edmonton. Contact me for more information.

When buying a home in Edmonton, getting a first time home buyer mortgage can be quite a feat. With these tips, the home buying process will be clearer and you will improve your chances of securing a mortgage to buy your first home.  Contact me to learn more.

1. Check Your Credit Score

Your credit score is a core factor in securing a mortgage. First, check if your credit report has any errors. If you find any inaccuracies, contact the credit bureaus and rectify the errors quickly.

To enhance your credit score, take time to review your debt-to-income ratio. Remember that while borrowing is vital in building your credit score, it can also harm your creditworthiness. Is your debt-to-income ratio too high? If yes, it is time to consider paying off some debts. As you approach your borrowing timeline, ensure that you make timely bill payments. Your payment habits also reflect in your credit report and may either improve or tarnish your image.

2. Do Some Market Research

Look for the homes within the local market and figure out which types of homes you can afford. Remember that you will need at least 5% downpayment to qualify for a first time home buyer mortgage.

• Do you have the entire amount, or do you need more time to save?

• What are your likely monthly costs and payments?

1. Find a Mortgage Broker

When hunting for a first time home buyer mortgage, working with a mortgage broker is a good idea. The mortgage broker acts as an intermediary between you and a variety of lenders to find you the best possible mortgage. After assessing your financial situation, the mortgage broker will determine a suitable loan amount, and contact different lenders to find you the best rate.

Applying for a mortgage can be a complicated process. With a mortgage broker, you get a partner that will do a lot of the legwork for obtaining your mortgage as well as help guide you through the home buying process completely free of charge.

3. Choose Your Terms

Your mortgage broker will walk you through many options for amortization, interest rates, and other terms.

When applying for a first time home buyer mortgage, you may want to ask about pre-payment penalties. Some lenders penalize borrowers for paying off their mortgage early. Understandably, if your cash flow increases over the years, you may want to double up on payments and clear your debts early. Just make sure that no one is punishing you for it!

Don’t be afraid to ask questions. A broker will help to guide you to the correct first time home buyer mortgage product for your financial situation.

Get Started

When you decide to purchase your first home in Edmonton, consulting a pro can cut back on unnecessary stress and help you save cash in the long run. Dominion Lending Centres Mortgage Mentors is a group of experienced mortgage brokers that specialize in first time home buyer loans. Contact me today to get pre-approved for your first time home buyer mortgage!