MortgagePal

So you're all set - you've got the great job with the all the security, your down payment on that first home is almost ready to go, and you're ready to make some grown up moves. But your old Civic is starting to feel a bit tired. She runs great, but she doesn't necessarily fit the vibe of your forthcoming new life. A sweet new financed SUV will look way more slick in your new driveway - and you can totally afford it, right? In theory, and even on your budget spreadsheet, tota...lly. In the eyes of a lender? Maybe not. Remember how a while back we chatted about debt ratios? Those percentages your lender will calculate to see how much of your income is spoken for each month while assessing your mortgage application? Well, in their eyes, a $500/month car payment is no different than a $500/month credit card payment. If you have one of those, on top of student loan and credit repayments, mixed with household expenses, it could hold you back from being able to qualify for the funding needed to buy that house with the driveway to park that sweet new ride in. So, we aren't saying not to buy the new car. But we are saying to maybe hold off. Find your home, park that Civic in the driveway and after you've settled in, then look at the new wheels. You will thank us, trust me.

With last week's announcement by the BoC that the proposed stress test changes will apply to both uninsured AND insured mortgages, there is lots of talk around these parts about how our buying power is decreasing and our ability to qualify is getting just the much more difficult. But, believe it or not, these rules are made to protect you. So, what actually IS a stress test? Basically, it is a method of "testing" how your financial situation would be affected in the event of ...sudden financial distress - like loss of employment or a sudden spike in interest rates. To do this, your lender will crunch the numbers to ensure that you could afford your borrowed amount at a rate considerably higher than the posted rate you will actually be paying for the term of your mortgage. This test has been around in Canada since 2017, so it's nothing new. But starting June 1st the qualifying rate for both insured and uninsured mortages will increase from 4.79% to 5.25% (or your contract rate + 2% - whichever is higher). In essence, this will reduce the amount all new buyers will qualify by 4-5% So, no, these guidelines aren't meant to stress you out. They're meant to protect you from going into more debt than you can afford. But, as is the moral of every story I tell around here - this would be a GREAT time to chat with your broker!

Happy Monday, finance friends! This weekend in my endless scrolling I came across yet another brilliant reel by every Insta mortgage person's BFF, @thatmortgageguy (which I will repost in stories) and was reminded that I, too have been guilty of not singing loudly enough about our industry's unsung heroes - underwriters! And given that we have some of the best in the business on our team, we have to shine a big, sparkly light on them So what is an underwriter, exactly? The na...mes sounds a hint ominous, doesn't it? It isn't at all, but it sure should hold some clout. Because these detail-driven earth angels carry the weight of your mortgage file (and about a thousand others at once) on their shoulders. It is your underwriter who pieces through your file, document by digit by 500th document, and helps to present an approvabale file to the lender. They comb every detail of your income, debts, assets and property details lovingly to find any boxes that still need checking or red flags that need addressing. These mostly behind the curtain beauties are our best friends! Their whole mission is to look at our numbers and see how to make them work. We LOVE underwriters! If you know an underwriter, give them extra love today. With the market on hot fire like it is, they absolutely need a real big hug, and probably a glass of water and a snack that they've forgetten to get for themselves because they have been so busy holding it down for us!

Happy Earth Day, pals! Did you know that both the federal, and most provincial governments offer not only education and resources to make our homes more energy efficient, but also a wealth of rebates and incentives? If you are in the financial position to do so as a homeowner, you can actually make super efficient and planet friendly upgrades to your home and basically get paid to do it! However, if you aren't yet a homeowner or can't justify the upgrades right now, you can d...o so many things to give a hug to our mother earth today and every day! plant a bee-friendly garden of native plants invest in reusable coffee cups and straws plan hearty, meatless meals a few nights a week learn and follow your municipality's recycling program conserve water all day every day! There are a thousand ways to thank our beautiful planet for being our home. What are some of the ways you say thank you?

Our friends at HeroWork are doing some amazing work supporting charitable organizations in our city. We made a donation of $1000 to support keeping Trevor up in the sky for 36 hours, and we're challenging our mortgage pro counterparts in the city to match it!

Anyone else feeling this way lately? I heard a young potential homebuyer say this on The Current yesterday. And if we're honest, I think this sentiment is growing amongst young Canadians. With housing markets across the country getting tighter and tighter, and offers from wealthier buyers getting increasingly competitive, it is really easy to believe this and to some extent, it may even be true. But, here's the thing. "Rich" is relative, wealth can be grown, and you're likely... in a lot stronger position than you think you are already. Yes, the current shape of real estate is overwhelming for buyers - not just first time buyers, either. But it can get a lot less scary once you've connected with someone on the financing side who can look at your specific situation and provide guidance and coaching on how we can get you over that finish line. So yes, be aware, keep learning, and watch trends if home ownership is in your crosshairs in the next year or two. And I know we say it a lot, but I'm going to say it again - reach out to a mortgage pro! Give your preconceived notions about the mortgage industry the boot - we're here to guide and support you. More so now than ever before as things get hotter and hotter out there. It doesn't have to be scary.

Heyyyy BC homeowners - this one's for you! Also, if you're a BC soon-to-be homeowner, or home ownership dreamer, this is a good one to take note of for you too! The BC Speculation tax is something to take note of, whether purchasing a home as your primary residence or as an investment property. The tax was introduced in 2019 as a means of combatting the housing crisis in our province, which has seen prices skyrocket with no signs of slowing down, and an increasing number of p...roperties being owned, but left vacant. If you are a homeowner living in your house - no problem! All you need to is remember to declare your exemption from the tax by MARCH 31ST, 2021. 99% of us are exempt from paying this tax at all, which ranges from 0.5% to up tp 2% of the assessed value of a property (and the high end is reserved for foreign owners to ensure they are contributing to the province's tax system). Fun fact: In its second year in effect, the tax contributed $88 million to upcoming affordable housing projects in the province. We don't hate taxes! We just don't want to pay when we are exempt. SO remember - if you own your primary residence in BC, DECLARE BY THE 31ST. Thank you for coming to my Ted talk.

No hot mortgage info today - just a quick reminder that today is the first day of spring! And spring is all about growth, and that beautiful moment when the frost starts to melt and the days get a bit longer and the light wins over the dark. So spend some time today thinking about your goals - think about everything you have achieved so far this year, and everything you want to achieve during the warmer months. Sunshine is coming, friends, and it looks like it might be bringing a light at the end of the tunnel with it!

In case I haven't made it super clear by now why exactly we do what we do and love it, this sweet note from our client and new friend Gaby makes it as clear as day! This industry isn't all about numbers and rates and commissions and payments and complicated financial jargon made to confuse. In fact, it's not about that stuff at all. What it IS about is helping people to achieve their home ownership goals - as first time buyers, veteran owners or methodical real estate investors. All of that other stuff comes as a footnote. But this right here, this is the real headline

After yesterday's reel - where we stated that a potential way to solve a condition-free offer gone wrong (that won't work in all circumstances) is to take on a mortgage with an alternative lender at a high interest rate - we got a few questions about what exactly an alternative lender is. So, let's clear that up, shall we? Alternative lenders are a growing section of the lending side of our industry that have been making a bigger name for themselves in recent years. For a lon...g time A-lenders (banks, credit unions and monoline lenders) were the go-to, the cream of the crop in the eyes of borrowers and brokers alike. But there are a growing number of borrowers who need a different sort of mortgage - one with looser restrictions around debt ratios, income streams or credit histories, for example. Enter: the alternative lender! Alt lending can look scary to a novice borrower, or anyone outside of the mortgage industry because often with their flexibility comes higher interest rates to protect them from the riskier lending situations. But in situations where credit histories are damaged, debt ratios are just a bit too high or a risky condition-free offer has lots its legs on the A-side, they are your best friend! So if you are self employed, have a rocky credit history, or can't meet the needs of an A-lender, don't grimace when you broker drops "alternative" as an option. These lenders are here to protect you, and help get you into that home while you work on graduation to an A-lender. I've said it before and I will say it again and again - no jumping to conclusions before speaking with a broker you trust! Call me!

We hear it all the time - and somehow even more so lately: "My credit sucks, I'll never get a mortgage." "I am so embarrassed by my credit score." or a common favourite:... "You'll notice this blip that screwed up my credit when I was young and stupid," followed by a ton of explanation. And I get it. It is daunting seeing that number fluctuate, and seeing constant marketing aimed at healing broken credit, as if you have failed as a human if your credit store is not outstanding. But, here's the thing - it's normal to have ups and downs, you are not alone in your anxiety and it's definitely not permanent. Sure, yes. Your credit score is an important factor in your borrowing power. But it is not the only factor. Nor does it have to hold you back forever, even if it is holding you back now. There are a thousand ways to support and nurture your credit. Even if you made some less-than-ideal financial moves in your youth, or even last week. There are always things you can do to support and grow your credit organically, in a way that won't contribute to any undue feelings of shame around it. Did you know that our team of brokers also provides credit support and guidance? Give us a call! We're friendly faces that are here to help, not to make you feel worse about that little number. And remember, you are more than your score!

With all the talk of fixed rates going up and yesterday's Bank of Canada announcement that the key overnight lending rate will remain at 0.25% (the lowest it can be), we've been hearing a lot of questions like this - should I go variable or fixed? Like lots of big questions in the mortgage financing space, there isn't a one-size-fits-all answer to this one. The pros and cons of both fixed and variable rates will hit differently to everyone, so it is always worth reflecting on... what you need/want/expect out of your mortgage product (and, of course, speaking with a broker) before making a decision one way or the other. Swipe to see a quick and dirty run down of each type of rate and see what feels comfortable, or what you have more questions about. Both variable and fixed mortgages have great benefits! But the final decision lands with you, your comfort level, and the advise of your broker to choose the type of rate that will ultimately be best for you. Note that, despite the fluctuation of interest rates throughout the lifetime of your variable mortgage, payments will stay consistent with *most* variable mortgages, but the amount of interest vs principle being paid down with each payment will vary.

Who run the world?! In a historically male-dominated industry, we are so proud to be largely driven by powerhouse women - 48% of our team and counting! While we (like most industries) have a long way to go, seeing an increasing number of women kicking butt in our industry is so inspiring - not only for us, but we're sure for women buyers looking to make moves for themselves! So, among all of the other incredible women doing incredible things and sharing incredible content cel...ebrating ALL women (not limited to cisgender women) we see in this space today and every day, let the faces of these incredible women inspire you today! We see you, we honour you, and we celebrate you! We are here to teach, to support and to guide you into home ownership - it's not a man's game!

There is going to be lots of hard and fast finance talk around here in the next week - with 5 year bond yields steadily rising and fixed rates following suit, I'm bringing a crash course in interest rates to all of your brains - with pretty colours, of course. So, since it's Saturday and the sun is shining, let's focus on something a little more colourful first. I don't know about you, but one of the most titillating aspects of home ownership for me is being able to do whatever I want to my space - tearing down walls, anyone? But of course, we can slay in our rentals too! What's the decor trend that's got you the most excited about owning your own walls right now? For me, it's colour blocking, and candy coloured kitchen cabinets!