Tuesday, March 25, 2008

Spring is Sprung (hopefully) and thoughts turn to a new home or cottage.

The big question ? How do I pre-qualify for a mortgage ?

Information required to be pre-qualified for a mortgage:

Ask your employer to prepare a letter on company letterhead outlining your name, base salary or hourly rate, normal hours worked per week, position and length of service. A recent pay stub and a copy of your T4 from last year may also be required.
If commission sales, three years personal tax returns together with the Notice of Assessments from Canada Customs & Revenue Agency.
If self-employed, three years personal tax returns together with the Notice of Assessments from Canada Customs & Revenue Agency, three years business financial statements, and three years business tax returns (if applicable).
Note: New products have been launched to the marketplace where, with good credit, you can qualify for a mortgage based on your stated income*. This type of mortgage was designed for the self-employed, including contractors, freelancers, consultants, commission sales professionals, or small business owners. Talk to us about mortgage approvals specifically for the self-employed.
Social Insurance Numbers. (Optional).
At least 3 years history of residence and employment.
Know your banking information (name of financial institutions, address, and type of accounts, account numbers).
Know your assets (what you own) and their value. i.e. cash amounts, stocks, bonds, RRSPs, car.
Know your liabilities (what you owe). i.e. car loan, credit card balances, child or spousal support payments.
Please let us know about any past credit problems you may have had.
Write down a list of questions you would like to have answered.
A pre-qualification is usually good from 90-120 days depending on the lender and product. Once pre-qualified your fixed rate would also be locked in for a specified time frame. If interest rates go up the rate on your pre-qualification would apply as long as your mortgage closed within the specified time frame. If rates go down you would also benefit from the lower rates again within the specified time frame on your pre-approval.*
To get pre-qualified visit www.larrybroadley.com/MIpage.htm

F or a Home Buyers Guide go to www.larrybroadley.com/hbg.htm

Before you make what is likely to be the biggest financial decision of your life, call us at 877-338 5899 or email larry.broadley@migroup.ca

To maximize the benefits to you, you will want to consider enlisting the services of a Mortgage Intelligence consultant. We negotiate with major financial institutions, chartered banks, trust and insurance companies, Canada Mortgage and Housing Corporation, Genworth and others to bring our clients the most competitive mortgage rates and terms. Mortgage Intelligence will usually earn a commission or fee from the lender* for all the work, advertising and promotion done on their behalf. Our professional services are provided, in most cases, at no cost to you. We are constantly updated on rate changes and new products being introduced in the market. As our client, you can choose from the widest range of options, obtain the most competitive rate and best product suited to your specific needs. An extensive network of financial institutions has enabled many of our clients to obtain savings of up to 1.40% below posted lender rates.
For more information or a free consultation - Please contact Larry Broadley at 877 338 5899 or by e-mail larry.broadley@migroup.ca
* Subject to certain guidelines
For Real Estate Buying and Selling along Ontario's West Coast ............Ipperwash to Goderich try http://www.grandbend4sale.com/

Tuesday, March 18, 2008

With today's lower rates and market uncertainty this is one of the most often asked questions

Fixed or variable-rate mortgage?

“Wow!” you say to your spouse as you hit the brakes on the car. “Did you see the mortgage rate those guys are advertising?” Your worries are over, you’re thinking. Just lock in a rate like that for the next ten years, and you’ve got it made.

Not so fast. That rate may not be the one for you. Typically, the lowest available rate – and the one that makes the rate sign look great from the street – will be for a variable or adjustable-rate mortgage. That rate has the potential to be like a roller coaster. The posted variable or adjustable rate is the rate you’re getting today. Unless you have an economic Ouija board, you won’t be able to predict what kind of ups and downs are ahead of you.

Let’s take a closer look. A lender will offer different rates for different types of mortgages. The rates are determined based on financial risk – to the institution and to you. When a customer is willing to take on the risk, he/she is rewarded with a lower rate. If the lender is taking on the risk (that is, the customer is promised a particular rate… regardless of what happens in the future), the rate is higher. The longer the term, the higher the risk for the financial institution.

So how do you decide? Fixed-rate mortgages, because they require a low risk tolerance, are usually better suited to first-time buyers or those who haven’t owned a home for a very long period. Ask yourself these questions: Do you like or need to know exactly what your payment is going to be over a longer period of time? Do you want to avoid the need to consistently watch rates? Do you have less than 25% down? If you answered “yes” to all, or most of these questions, a more conservative fixed-rate mortgage could be the better choice for you.

A variable or adjustable-rate mortgage is best suited to people who have a flexible budget and can tolerate higher risk. Ask yourself these questions: Do you watch market conditions? Can you handle any sudden rate increases that could increase your payment? Do you have 25% or more equity in your home? If you answered “yes” to all, or most of these questions, a variable or adjustable-rate mortgage might best suit your needs.

Some lenders offer a special promotional rate for the first few months of a variable-rate mortgage, which you should discuss with your mortgage broker. Also discuss what your rate will be based on – prime minus 0.5% or 0.6% or on Bankers’ Acceptances (BAs) plus 1%. The latter being a new kind of adjustable-rate mortgage that has recently been introduced to the marketplace. Most variable or adjustable mortgages allow you to exercise an option to “lock in” a fixed rate at any time for the remaining portion of your mortgage term or for a longer term.

If the uncertainty of a floating rate is going to give you sleepless nights, you’re in good company. Many Canadians prefer the certainty of a fixed-rate mortgage. They know exactly how much they will pay over the term of their mortgage, and they can plan accordingly… with no financial surprises. But if rates do drop… and drop… and drop… you are committed to the “promise” that you have made. Your best option - have a professional help you decide which option best meets your needs.
For Mortgage info or Real Estate Info click on

Sunday, March 2, 2008

Times are changing, now in addition to all your buying and selling needs along Ontario's west Coast ( Lake Huron ) I have now added Mortgage Brokerage to my resume and teamed with Mortgage Intelligence to provide Mortgage and Loan services to clients, making what I offer FULL service in buying a home as well as ongoing re-financing opportunities. I can be reached either at 519 238 - 5700 (RE/MAX) or 519 238 - 5899 ( Mortgage Intelligence ) or Toll Free at 877 338 - 5899.

If your thinking about Summer Rentals in Grand Bend, Port Franks Ipperwash or Bayfield you better hurry, things are booking fast . For Rental info go to www.grandbend4sale.com/RentalPage.htm . At my rental, only the 1st 2 weeks of July are available, however wekend packages ( or weekly ) are available for April, May and June. Go to www.grandbend4sale.com/44walker.htm .