Mylene Lim
200-4170 Still Creek Dr V5C 6C6 Burnaby, BC, Canada

REDUCTION ON MORTGAGE STRESS-TEST RATE The federal government recently announced changes to the stress test rate for insured mortgages (down payment of below 20%) starting April 6th, 2020. The new qualifying rate will be the greater of the borrower’s mortgage contract rate or the weekly median five-year fixed insured mortgage rate, plus 2%. For insured mortgages, the Bank of Canada five-year benchmark posted mortgage rate has been the posted rate of the big-six banks + 2%, w...hich effectively sets the rate at 5.19%. However, the existing stress-test rate for insured mortgages, which was implemented in 2016, was deemed not dynamic enough to reflect changes in lending rates. Let’s go a bit deeper on how this new development will affect borrowers come April 6th when the new rule takes place, especially for first time home buyers. As mentioned earlier, under the existing guideline, borrowers are qualified at 5.19%. But effective April 6th, borrowers may be qualified at 4.89% (average of current contract rate of 2.89% + 2% = 4.89%). That is, assuming that contract rates remain at roughly today’s levels. Now, let's quantify this change by assigning some numbers so borrowers can visualize how this new mortgage rate qualifier will affect their application. Say for example you were pre-qualified to purchase a home valued at 425K under the existing rate of 5.19%. With the new guideline, your pre-qualified purchase price may go up to 445K. If you were pre-qualified for 375K, then your pre-qualified purchase may go up to 385K. Not really substantial in the overall scheme of things, especially in the BC housing market. Now let’s look at the opposite scenario and project that the weekly median five-year fixed interest rate goes up to 3.09%. Then effectively, your pre-qualified purchase price will see a drop. Add to this equation is the fact that the median rate will be determined on a weekly basis. It is, therefore, even more imperative that borrowers should have a financing subject clause in their purchase offer. All things being equal, this change is a boost not only to the purchase power of borrowers, but will also have a positive impact to borrowers’ phyche. In such a dynamic market where so many factors have to be considered, it is to your advantage to consult with an experienced mortgage professional in order to maximize your chances of being approved for your home purchase.

Spent a lazy Sunday in beautiful Victoria celebrating a house warming with happy clients. What was a seemingly straightforward mortgage application morphed into a complicated one. That was when knowledge, experience and dedication of a mortgage professional kicked in for the home run

ARE YOU AFFECTED BY THE INCREASE IN STRATA INSURANCE RATES? Homeowners in B.C., particularly condo and townhouse owners, are now bracing themselves to deal with the hike in insurance premiums for strata buildings, anywhere from 50 to 500 percent. Over and above that, the deductibles are also expected to go up anywhere from $10,000 or $20,000 to as high as $150,000 or $500,000. Why is this happening? ...Continue reading

YEAR-END FINANCIAL CHECK UP At the end of each year, you should review your financial situation to ensure that you are on the right track for a secured financial future. CREDIT...Continue reading

As expected, property values have gone down in 2020. What’s your property worth? Here’s the link to check.

MORTGAGE QUESTIONS COMMONLY ASKED Whether you’re buying your first home, renewing or refinancing your current mortgage, these are the most common questions that I get asked. This is a good overview for first time home buyers and a refresher for those looking to renew or refinance. 1. What’s the best rate I can get? This is dependent on a lot of factors such as credit score, income, debts, down payment, closing date, property, owner occupied or rental property, etc. ... 2. What’s the maximum mortgage amount for which I can qualify? Again, this is going to be based on your income, credit score, current debts, mortgage product, property, etc. 3. How much money do I need for a down payment? For owner-occupied property, the minimum down payment required is 5% of the purchase price for property value of up to 500,000, 10% for value of up to 1M, and 20% for value over 1M. Minimum down payment required is applicable even if you’re not a first time homebuyer as long as property will be used as principal residence. Minimum down payment for rental properties is 20% of purchase price. For renewal or refinance, lenders generally lend between 70-80% of the appraised market value of your property, which may not be the same as government assessed value. 4. What happens if I don’t have the full down payment amount? There are programs available that will enable you to use other forms of down payment, such as from your RRSPs Home Buyers’ Plan (HBP), or non-repayable monetary gift from immediate family member. 5. What will lenders look at when qualifying me for a mortgage? The usual factors are income, debt, credit rating, down payment and property. If would like to have a complimentary no-obligation consultation on mortgage matters, please don’t hesitate to contact me.

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HOW TO PROTECT AGAINST REAL ESTATE TITLE FRAUD Real estate title fraud is on the rise in Canada. Criminals fraudsters and thieves can steal your home without you even knowing about it. When you purchased your home, you purchased the title to the property and your name is registered at the provincial land title office as the owner of the property and anyone searching the records will see you as the owner of the property. Real estate title fraud happens when someone gets t...he title of your property to change the ownership on your title from your name to theirs. These fraudsters and thieves will forge the transfer deed and then register the title of the property in their name. They often target properties without any mortgage on it and borrow against the clear title. If there is a mortgage charged to your title, these offenders will forge a discharge of the existing mortgage and then borrow on what is now a clear title. Of course these criminals do not make any payments, so when the lender serves the notice of foreclosure, that is when the scheme is brought to the attention of the real owner, which is you. How does this happen? Home title fraud is usually a result of identity theft. There are so many ways that criminals can steal your identity without your knowledge, some of which are: Phone scams such as free vacations, prize winner, Phony Debt Collectors Warrant Threats by CRA Fake charities Online financial transaction Dumpster diving Mail box theft Computer hacking Phishing emails How can you minimize the chances of this from happening to you? Do not give your personal information to anyone, especially strangers, on the phone or over the internet Never rush into anything involving your money or your property. If it seems too good to be true deal, it probably is. Only carry necessary identification with you. You can leave your SIN card, birth certificate or citizenship card in a secured place. Shred or burn any documents that contain personal information. Keep track of when bills are supposed to arrive in the mail. Be careful with emails that request you to log on to websites. Financial institutions will never send you an email to log in to your bank account. Be wary about threatening phone calls. Professional organizations such as the CRA, banks and creditors follow a strict professional code of ethics. They will never use threatening or aggressive language such as sending a sheriff to arrest you. They will never ask you to give out personal information over the phone.

WHAT SHOULD YOU KNOW ABOUT YOUR BC PROPERTY ASSESSMENT? BC Property Assessments have been sent in the mail for about two million homeowners in British Columbia. The biggest drop in property values can be seen in detached homes in West Vancouver and UBC areas (- 16%), followed by detached homes in Richmond (-14%), and then Vancouver, Coquitlam and North Vancouver detached homes (-11%). It is, however, a different story in the rest of the province. Other major areas remained r...elatively stable over the last year: Victoria and Kelowna (-2%), Nanaimo (+3%), Prince George (+5%) and Kamloops (+7%). It's important to remember that the property tax bill that homeowners will receive in May of this year has very little to do with how much your property’s value has gone up or down. Changes in property assessments do not automatically translate into a corresponding change in property taxes. The property tax bill is based on the municipal’s budget and is determined by changes in your community. For example, despite the 11% drop of property values in Vancouver, there is a 7% increase in property tax for 2020 that has already been passed. BC Assessment’s website at www.bcassessment.ca has more details about the 2020 assessment, property information and trends. The website also provides free self-service to online property search service to check and compare 2020 property assessments anywhere in the province. For those who feel that their property assessment does not reflect the market value as of July 1, 2019, or see incorrect information on their notice, they should contact BC Assessment as indicated on their notice as soon as possible. I AM CURRENTLY OFFERING A FREE 3D2N WITH HOTEL AND AIRFARE PACKAGE FOR EVERY MORTGAGE THAT I ARRANGE IN 2020.

FIRST-TIME HOMEBUYER INCENTIVE The 2019 federal budget was released last week and in it is a new program for first-time homebuyers. Called the First-Time Homebuyer Incentive, the program is geared towards helping first-time homebuyers purchase their home through what is termed as shared equity mortgage with Canada Mortgage and Housing Corporation (CMHC). The government says that $1.25 billion has been earmarked for the program over the next three years and about 100,000 Ca...nadians are expected to benefit from it. There is another $100 million in additional financing to be made available through third-party groups, including non-government institutions. The key points of the CMHC First-Time Homebuyer Incentive are: 1) First-time homebuyers can now use up to $35,000 of their RRSPs to put toward their down payment, an increase of $10,000 from the previous cap of $25,000. Buyers will have up to 15 years to pay back the money they borrowed from their RRSPs. 2) CMHC will provide a loan of up to 10% of the purchase price for newly constructed properties or 5% to existing properties. The decrease in mortgage amount from financial institutions may marginally stretch the buyers’ purchasing power, depending on their purchase price and down payment. The government is expected to come up with additional information and guidelines later this year. To discuss this program further, please feel free to contact me.

DOES THE BC SPECULATION and VACANCY TAX APPLY TO YOU?

Hello, my name is Mylene Villanueva Lim. I graduated from the University of the Philippines and helped managed the customs brokerage and freight forwarding business that my husband and I set up early on in our careers. We moved to Canada in 2002 in search of opportunities especially for our children. We have bought and sold a few houses since we got here and the intricacies of funding for our purchases was what got me involved in the mortgage industry. I have been a licensed ...mortgage broker for a few years and I am driven to always provide the best service for my clients. I strongly believe that the best way I can help my clients is to take the extra time to listen to their specific requirement, needs, challenges, concerns, and their short and long-term plans. My dedication, perseverance and openness with the mortgage process from start to finish are always greatly valued by my clients. My promise is that I will work with you and for you to get the best mortgage so you save not only time and money, but will have the peace of mind that you have the best mortgage available to meet your needs.