10 Things to Consider Before your Mortgage Renews

1. Have you explored all your options?
Once you receive your mortgage renewal statement, there’s
nothing easier than simply signing on for another term.
But while this may makes ense in many cases, your
family or financial situation may have changed over time.
We can look for opportunities that could better meet your
needs right now.

2. Are you comfortable with your payments?
If you’ve been feeling financially strapped each
month making your mortgage payments, this could be the
time to reduce them to a more easily managed level.
On the other hand, if you’re earning more, why not pay
down your mortgage faster and save thousands of dollars
in interest over time?

3. Do you need cash flow for other things?
Your priorities may haveshifted since you first bought your home,
and your cash flow needs can shift too. Things like paying for a
child’s university education, planning a career change,
or a major purchase such as a vacation property may
call for spending money on things other than your
home. You may be able to refinance your mortgage to
take this into account.

4. Can you handle fluctuating rates?
Some homeowners are nervous about any hikes in
interest rates, while others are comfortable to go with
the flow. Rates are tough to predict. It’s best to base your
decision on your personal situation, not what you read
in the news, and tailor your mortgage renewal around
your needs. We can help you decide whether to opt for
fixed or variable rates — and we don’t want you to lose
any sleep over your decision!
5. Will you sell soon? If you are likely to sell
soon, consider a shorter-term mortgage or one that has
flexible terms so you’re not penalized if you sell your
house before the mortgage comes due.

6.  Are you thinking about a major renovation?
You know that projects such as a new kitchen or
an addition can make your home more valuable. But
the cost of having the work done can tie up a lot of
money. Before you renew, look at all your financing
options, which may include getting an additional line
of credit or keeping your monthly mortgage payments
low so you have money on hand to finance the renos.

7. When do you want to be “mortgage-free”?
If you’re planning extended time away from work or
perhaps an early retirement, it may make sense to pay
down your mortgage sooner rather than later. While
increasing your payments will raise your monthly costs
now, you’ll ultimately save on interest in the long term and
can prepare for that fabulous, mortgage-free lifestyle.

8. Could you use your home equity to fulfill other goals?
 Refinancing a mortgage can be one wayto free up cash you
need for other things, which could even include buying another property.
Mortgage renewal time is an ideal occasion to review all your options.

9. Have your insurance needs changed?
If your financial situation has changed since you first took
out your mortgage, review whether you need the same
level of insurance in place to cover mortgage obligations.

10. Are you getting the best rates and
terms? In a competitive mortgage environment,
your good credit history can make refinancing work to
your advantage. We analyze mortgage markets daily to
ensure you don’t miss any money-saving opportunities.



We have access to the widest variety of
lenders — to find the right solution
for you. We are experts at helping you
achieve your homeownership dreams.
Access your best options!
REFERRALS WELCOME!
 

Denise Benninger,
Mortgage Agent
The Mortgage Wellness Group
Verico 11970
Phone: 519-571-8392
Cell: 519-502-1091
Fax: 1-866-400-0250
Email:
dbenninger@mortgagewellness.ca
Website: www.mymortgagewatch.ca

6 MONTHS TO A BETTER BUDGET

One of the challenges with proper budgeting is that it has to become habitual in order to be effective. You can survive without knowing how to budget if you manage to keep more money coming in rather than going out or have credit cards to cover the gap, but this won't last forever.

Emergency Fund

The crux of this six-month plan is the emergency fund. Ideally, everyone should have at least one or two months' wages sitting in a money market account for any unpleasant surprises. This emergency fund acts as a buffer as the rest of the budget is put in place, and should replace the use of credit cards for emergency situations. You will want to build your emergency fund as quickly as possible. The key is to build the fund at regular intervals, consistently devoting a certain percentage of each paycheck toward it and, if possible, putting in whatever you can spare on top. 

What's an Emergency?

You should only use the emergency money for true emergencies: like when you drive to work but your muffler stays at home. Covering regular purchases like clothes and food do not count, even if you used your credit card to buy them. 

Downsize and Substitute

Now that you have a buffer between you and more high-interest debt, it is time to start the process of downsizing.  It’s odd that the natural solution to "not enough money" seems to be increasing income rather than decreasing spending, but this backwards approach is very familiar to debt counselors. The more space you can create between your expenses and your income, the more income you will have to pay down debt and invest. This can be a process of substitution as much as elimination. For example, if you buy coffee from a fancy coffee shop every morning, you could just as easily purchase a coffee maker with a grinder and make your own, saving more money over the long term.

Focus on Rewards

Another trick that will help your budget come together faster is to focus on the rewards. A mixture of long- and short-term goals will help keep you motivated. This can be as simple as saving for a small luxury, or even something bigger like buying a car with cash. Watching these goals slowly but surely become a reality can be very satisfying and provide further motivation to work harder at your budget.

Find New Sources of Income

Why isn't this the first step? If you simply increase your income without a budget to handle the extra cash properly, the gains tend to slip through the cracks and vanish. Once you have your budget in place and have more money coming in than going out, you can start investing to create more income.

Now, it is possible that it will take you more than six months to get your budget balanced out as it all depends on your situation, including how much or what kind of debt you have. But, even if it does take you longer than six months to get your budget turned around, it is time well spent.        

Mortgage Trick or Treating 101

NOT SURE what  TRICKS the banks are handing out ?

 Your broker knows exactly how to get the best possible TREAT on your renewal, purchase or re-finance !

I’ve got the answers you’re looking for and some you didn’t know you needed !

Pick up your Mortgage Statement and call me today !!!

I love phone calls and emails. Advice is ALWAYS free

Tip # 1  FIND OUT FROM YOUR BROKER HOW TO UNDERSTAND YOUR PENALTY FOR RENEWING OR BREAKING YOUR MORTGAGE EARLY.  DON’T BE SPOOKED BY A PENALTY THAT COULD END UP SAVING YOU THOUSANDS !!!!

Tip # 2  FIND OUT WHAT YOUR PRE-PAYMENT PRIVELEGES  AND PAYMENT OPTIONS ARE ON YOUR MORTGAGE AND HOW TO MAKE THEM WORK FOR YOU . YOUR BROKER CAN HELP YOU BUDGET FOR EARLY PAYOFF OF YOUR MORTGAGE .

Tip # 3 FIND OUT HOW TO ACCESS YOUR EQUITY WHEN YOU NEED IT TO AVOID HIGHER INTEREST CREDIT LINES AND CREDIT CARDS. THE TRICK IS TO  HAVE YOUR BROKER SET IT UP WITH YOUR PURCHASE, RENEWAL OR RE-FINANCE TO SAVE EXTRA COSTS.

 

Pick up your Mortgage Statement and call me today !!!

519-954-8392

dbenninger@mortgagewellness.ca

Tips when Searching for a New Home

Making the decision to purchase a home can be a bit overwhelming. Finding the perfect home, searching for the financing, and dealing with sellers and multiple offers is enough to make anyone crazy. These tips will help make your search a little easier. Follow them and you’ll be sure to come out on top.

GETTING PREPARED
1. Get Pre-Approved
Getting pre-qualified for mortgage financing will enable you to have an idea of your price range. Looking at houses for sale that are out of your price range is a recipe for disappointment and can potentially cost you money. Your time is valuable so don’t waste it. Contact a trusted Mortgage Broker. Interview them and be sure to ask them important questions.
2. Make a list of what is important to you in a home
Are you primarily concerned with space? Do you want to live closer to downtown? If so you may want to look at older homes which usually cost less per square foot than new construction. If you like to cook make sure a spacious kitchen is on your list. A list will help you stay focused during your search so you're not distracted by amenities you don't need. Your decision should be based on reason, not emotion.
3. Visit Open Houses
To get an idea of what you are looking for in a home or apartment, you need to see what’s out there. The good, the bad, and the ugly…take it all in. The only way you will better understand what your price range will deliver is to view what is on the market. If you visit a Private Sale, ask the seller if they are open to working with a buyer that has a Realtor representing them. If they say no, move on.
4. Be Realistic
Most buyers want a brand new home but that comes at a cost. A new construction home may not be available in the older parts of town that bring with them the charm and character of a mature neighbourhood. If you are dead set on something you may have to make a few concessions in other areas of the home like size or location. Be sure to ask your Mortgage Broker about the financing options for older homes that need immediate repair and updating as these costs do not have to come out of your pocket upfront.
5. Work with a Realtor
A real estate agent is worth much more than you think. Realtors know their city and the local market best. They can also let you know if you have realistic expectations before you waste your time looking for a home that just doesn't exist. Also, buying a home using a Realtor is totally FREE! Don’t forget the legal benefits that come with using one as well. Ask them to explain these to you; you’ll be amazed at what they have to say.
Denise Benninger | 519-502-1091 | Verico The Mortgage Wellness Group | Licence #11970
STARTING YOUR SEARCH
1. Look Online
Most homes for sale are advertised on the internet and include photos and maps of the area. The best site to do this would be Realtor.ca. Looking at real estate listings online will help to narrow your search and save your gas. Your real estate agent can even email real estate listings directly to you as they become available, another awesome benefit for using a Realtor. Homes for sale by owner are frequently posted online as well however run the risk of slightly higher prices and unprotected buyers due to potential hidden risks. Always consult with your Realtor if you are interested in looking at a Private Sale.
2. Take Your Time
Make sure you have enough time to really look at a home or wait until later. Looking at a home when you're in a hurry can cause you to overlook both positive and negative features. Again, use reason when you find a home. Emotional home buying can lead to costly regrets and unexpected losses.
3. Become a Note-taker
Bring a notebook with you when you go to look at homes. Open houses, Model homes, and viewings with your Agent are all great opportunities to really do your research and to write down the pros and cons of every home. Take notes on the things you dislike and like, repairs that may affect the price of the home, and any other concerns like noisy neighbours or homes around the area. Afterwards you can use your notes to compare homes and narrow down your choices based on everything you have seen.
Denise Benninger | 519-502-1091 | Verico The Mortgage Wellness Group | Licence #11970
MAKING YOUR FINAL DECISION
Once you have narrowed your search down to a few homes, here are some other things you can do to make your choice easier:
1. Make sure you visit at different times of the day and night. You may find out about loud neighbours, dogs that bark all night or some other detraction from the property.
2. Talk to the neighbours. Neighbours have insights into the area like only a local does. You may find out about a tucked away park or plans for a development that might increase traffic.
3. Drive around the area to make sure you are in close enough proximity to stores, restaurants and other business.
4. If possible go by during a rain storm to find out about potential flooding issues. Even if the home itself is fine the streets around it may flood.
5. Check for the energy rating which is available for a large portion of the real estate in Canada. A higher energy rating means lower electric bills.
6. If you are moving to a condominium or apartment community check into the subdivision restrictions. There may be rules concerning the number of pets or landscaping restrictions. In some cases there may even be monthly or yearly association dues.
Finding the right home may seem like a lot of work, but with careful planning and patience you'll find your dream home in no time. Ensuring that you use the professional services of a Mortgage Broker and a Real Estate Agent will drastically help this search.
Sincerely,
Denise

The No Money Down Mortgage Does Exist !

I love showing people how to own a home sooner ! 

The No Money Down Mortgage = Own a Home Faster Program

Property Value $225,000

                                                                5% Down                      $0 Down                                             

Downpayment                                  $11,250                                 $0

Monthly Payment                           $1,015                                    $1295     Difference = $280/month

Down Payment / Savings per month              $11,250 / 280 = 40 months

THIS MEANS IT WOULD TAKE THE BUYER APPROX 3.5 YEARS TO SAVE THE DOWNPAYMENT THEMSELVES AT A SAVINGS OF $280/MONTH

Interest Rate                                     3.99%                                      5.69%

Balance in 3.5yrs                               $200,000                             $214,000

Value of Property 3.5 yrs                   $260,000                             $260,000

(using  approx 5% for 3 yrs)

EQUITY POSITION                            23%                                  18%

5% cash back is paid back in full ONLY at the end of 5 yrs, and others pro-rate the repayment each year the mortgage term is fulfilled. Early re-payment of a cash back mortgage can be costly if it is not placed with the right lender based on the buyers’ short term goals.

Down Payment helpers also available at lower interest rates for 1%, 2% , 3% and 4% - these are very helpful if client is running over budget on their purchase price.

This is intended for illustration only and each situation may vary slightly . All No money down mortgages are on approved credit !

CALL ME TODAY IF YOU SOMEONE YOU KNOW NEEDS TO OWN A HOME FASTER !

THANKS FOR CHECKING MY BLOG 

DENISE BENNINGER

519-954-8392

dbenninger@mortgagewellness.ca

Canadian Mortgage Changes effective March 18th and April 18th CMHC

Today I thought I would share with you a great Q&A from our lending partners at Street Capital. This is one of the best summaries I've seen on the upcoming CMHC changes to mortgage re-financing: Thanks Street Capital for sending us great material:



Effective March 18, 2011:

• Reduce the maximum amortization period from 35 to 30 years for new insured mortgages with loan-to-value ratios of more than 80 per cent.
• Lower the maximum amount Canadians can borrow when refinancing  a 1 – 4 unit owner-occupied property from 90 to 85 per cent of the value of their homes.

Effective April 18, 2011:

• Mortgage loan insurance will no longer be available for non-amortizing secured home equity lines of credit, or HELOC.

I already have an insured mortgage. How will these changes affect me?
CMHC mortgage insurance is good for the life of the mortgage. Borrowers renewing an insured mortgage will not be affected by these changes. For example, if a borrower had a 40 year amortization and there are 37 years remaining on the mortgage, the mortgage can be renewed with a 37 year amortization, as long as no new funds are being added to the mortgage. 
What is required to qualify for an exception to the new parameters?

If the approved lender has documentation of a binding purchase and sale, financing or refinancing agreement and that agreement was dated before March 18, 2011, CMHC will not apply the new parameters, even if the application for insurance is received by CMHC on or after March 18, 2011.
Will a purchase and sale agreement dated prior to March 18, 2011 be considered binding if there are outstanding conditions that have not been fulfilled prior to March 18?

Yes, if the date on the purchase and sale agreement is earlier than March 18, the new parameters will not apply, even if the conditions of the agreement have not been waived.
                Please note Street Capital will only accept purchase and sale agreements dated earlier than March 17, 2011 on an exception basis. 
Will the new refinancing rules allow a borrower with a mortgage above 85 per cent loan-to-value (LTV) to refinance by extending the amortization period?
No. Effective March 18, 2011, borrowers will not be permitted to refinance a mortgage above an  85% loan-to-value, unless the borrower has a binding refinance agreement dated prior to March 18, 2011.
I have a written mortgage pre-approval from a lender, dated before March 18, 2011 with a 35 year amortization. Will I still be eligible for a 35 year amortization if I don’t sign an agreement of purchase and sale until March 18 or later?
No, a mortgage pre-approval is not considered to be a “binding agreement”. You may have a 35 year amortization only if your agreement of purchase and sale is dated before March 18, 2011.
Will the new parameters apply to assignment (“switch” or transfer) of a previously-insured loan from one approved lender to another?
No. As long as the loan amount and amortization period are not increased, the new parameters will not apply to a switch/transfer/assignment of mortgage to a different approved lender.
If I sell my current home and buy another, will the new parameters apply if I transfer the outstanding balance of my CMHC-insured mortgage to the new home?
As long as the outstanding balance of the insured loan, the loan-to-value ratio and the remainder of the amortization period are not increased, the new parameters will not apply when the CMHC mortgage insurance is transferred from one home to another.
What if I need to increase the amount of my insured loan when I sell my current home and buy another?
In this situation the new parameters will apply for any insured loan. 
Is it only new Home Equity Lines of Credit (HELOCs) that are affected by the new parameters or existing HELOCs as well?

As of April 18, 2011, CMHC  will no longer offer mortgage loan insurance on non-amortizing lines of credit to approved lenders, such as HELOCs. However, if a HELOC is already CMHC insured then it remains insured for the  life of the mortgage.

HELOCs will no longer be insurable as of April 18, 2011. Is there any situation which would quality for an exception (e.g. binding agreement) to allow for these loans to be insured? 
No. As of April 18, 2011, non-amortizing lines of credit will not be eligible for mortgage loan insurance. Lenders can continue to offer non-amortizing HELOCs with a loan-to-value ratio up to 80 per cent on an uninsured basis. 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

* FAQs — New Parameters on Mortgage Insurance – Canadian Mortgage and Housing Corporation 

For additional clarification on the upcoming new Mortgage Parameters, please see link below:

http://www.cmhc-schl.gc.ca/en/corp/faq/faq_008.cfm