Tim Barnes Mortgage Agent

Watch for these closing costs... https://www.canadianmortgagetrends.com//dont-let-closing/

July was a big month for home sales. https://www.ctvnews.ca//more-canadian-homes-sold-in-july-t

The Bank of Canada has reduced the posted rate used to qualify for lending from 4.94% to 4.79%. This will have a marginal impact on increasing borrowers mortgage capacity but certainly good news for most. Contact me to learn how it impacts you.

Happy August long weekend. Be safe everyone

As expected, the Bank of Canada maintained its overnight lending rate. They announced it will not be increasing until the inflation objective is achieved. Click below to read the full announcement. Interest rates are still at record lows and now more than ever Canadian mortgage consumers should have a trusted broker on their side. If you have any questions don’t hesitate to contact me. https://www.bankofcanada.ca//07/fad-press-release-2020-07/

If you are working towards saving for a down payment to purchase a house this year, I can help you create a solid plan to help you achieve your goal. Contact me today for your VINE Solution.

Tuesday Tip: Bridge financing is a temporary financing option to help buyers "bridge" the gap between old and new mortgages, during the period of time that the existing property is sold and the new property is purchased. This solution allows buyers to leverage their existing equity in their current residence as a down payment while enabling buyers to move into a new home before their existing home sells. This option is not available with all lenders. Contact me to find out if this option is available to you.

Happy Canada Day!

Tuesday Tip: Did you know that most lenders will allow you to change the frequency of your mortgage payments? By opting for a more frequent mortgage payment, you can possibly shave years off your amortization. Contact me to find out more.

GDS and TDS. They are ratios that help lenders determine your affordability. GDS stands for Gross Debt Service and it is the percentage of your income needed to pay your monthly housing costs (principal, interest, property taxes, and heat) on the new property. To calculate GDS: Monthly housing-related costs divided by your gross monthly income. The industry standard for GDS is 35% for an uninsured mortgage loan. TDS stands for Total Debt Service and it is the percentage of ...your income required to cover ALL your debts. It is the same calculation as GDS, except you also include all of your monthly debts (car payments, credit cards, spousal/child support, and any other loan payments). The industry standard for GDS is 42% for an uninsured mortgage loan. As a borrower, you want these ratios to be as low as possible. To learn more about your affordability, send me a message today.

Tuesday Tip: Moving? Porting your mortgage allows you to move your existing mortgage (along with the terms and conditions) to a new home so you don’t have to pay penalty fees for breaking the mortgage mid-term. This option is not available with all lenders. Contact me to find out if this option is the right solution for you.

Important Update From CMHC: CMHC is making some changes to their underwriting guidelines given the current environment to mitigate taxpayer and government risk in the housing market effect on July 1st. COVID-19 has exposed long-standing vulnerabilities in our financial markets, and we must act now to protect the economic futures of Canadians, said Evan Siddall, CMHC’s President and CEO. These actions will protect home buyers, reduce government and taxpayer risk and support the stability of housing markets while curtailing excessive demand and unsustainable house price growth.