Standing out in the community

What is all this talk about so many Mortgage changes???? Why are people under the perception that you need more than 5% down on buying a house? The new mortgage rules had little to do with down payments in fact for the average home buyer the down payment rules have not changed at all.

When March 2012 ushered in a pile of new mortgage rules many people freaked out about qualifying. Yes there were changes that affected the ability to qualify for a mortgage, like the change from a 30 year max amortization to 25 years amortization, resulting in a higher mortgage payment.

As mortgage brokers we are always looking for ways to better educate and advise our clients. One of the things we noticed in talking with our clients was the lack of education about down payments. Many of our clients have been lead to believe that they will no longer qualify with the new rules in place. Reality is we help many clients who have been told they will not qualify or have helped them qualify for a higher mortgage. We take into consideration all of the variables and options out there and because we work independently we are able to negotiate the rates with over 40 different lenders.

Now to talk down payments, since that is what this blog is supposed to be about….. The truth is you CAN STILL BUY WITH 5% DOWN!! Yes this is true, and NO YOU DO NOT NEED TO BE A FIRST TIME HOME BUYER. This can be the 5th home you have purchased as an owner occupied unit and you can still put as little as 5% down. Yes, it is true, you will be paying a premium to a mortgage insurer like CMHC, Genworth or Canada Guarantee however with rates as low as they are currently, it doesn’t affect the payment substantially. What the mortgage insurers do for you is allow you to put less than the lender requirement of 20% down by insuring the extra down payment funds, they do this by charging you a premium over the life of the mortgage…

So basically don’t count yourself out of the market, rates are the best they have ever been, which also helps with qualifying.

Harmony Mortgage Group is dedicated to keeping up with the latest regulations, policies and programs offered by the different lenders. Because of this we are able to offer our clients the best service and options that are out there on an ongoing basis. We do the negotiations and leg work for you.

1-888-755-1126
HarmonyMortgage.ca
HarmonyMortgage@gmail.com

$10,000 First Time Homebuyer BONUS!

Effective February 21, 2012, to March 31, 2013, the bonus is a one-time refundable personal

income tax credit worth up to $10,000. Certain restrictions and qualifications do apply – please click the 2 links below to find out more information. And, as always, if you have ANY questions or concerns, please do not hesitate to contact us!

Federal Grant :

More details on the Federal Grant can be found HERE (CRA Website)

BC Grant :

More information on the BC Bonus is available HERE (BC Gov PDF Document)

With mortgage rates still hovering at historic lows, chances are you’ve considered breaking your current mortgage and renewing now before rates begin to rise.
Perhaps you want to free up cash for such things as renovations, travel or putting towards your children’s education? Or maybe you want to pay down debt or pay your mortgage off faster?
If you’ve thought about breaking your mortgage and taking advantage of these historically low rates, feel free to give me a call or send me an email to discuss your options.
In some cases, the penalty can be quite substantial if you aren’t very far into your mortgage term, but we can determine if breaking your mortgage now will benefit you long term.
People often assume the penalty for breaking a mortgage amounts to three months’ interest payments so, when they crunch the numbers, it doesn’t seem so bad. In most cases, however, the penalty is the greater of three months’ interest or the interest rate differential (IRD).

The IRD is the difference between the interest rate on your mortgage contract and today’s rate, which is the rate at which the lender can relend the money. And with rates so low these days, the IRD tends to be greater than three months’ interest. Because this is a way for banks to recuperate any losses, for some people, breaking and renegotiating at a lower rate without careful planning can mean they come out no further ahead.
Keep in mind, however, that penalties vary from lender to lender and there are different penalties for different types of mortgages. In addition, the size of your down payment and whether you opted for a “cash back” mortgage can influence penalties.
While breaking a mortgage and paying penalties based on the IRD can result in a break-even proposition in the short term, if you look at the big picture, you’ll see that the true savings are long term – as we know that rates will be higher in the years to come. Your current goal is to secure a long-term rate commitment before it’s too late, and here lies the significant future savings.
As always, if you have questions about breaking your mortgage to secure a lower rate, or general mortgage questions, I’m here to help!

New Homebuyer Calculator & Mobile App
Canada Mortgage and Housing Corporation (CMHC) recently introduced two new tools to help Canadian homebuyers make informed and responsible home-buying decisions – including a calculator and mobile app.
CMHC’s new Debt Service Calculator allows homebuyers to evaluate their financial situation and understand how much they can comfortably afford to spend on a mortgage. The easy-to-use calculator allows users to quickly estimate their gross debt-service ratio (GDS) and total debt-service ratio (TDS) – both important measures in assessing their financial readiness for homeownership. The Debt Service Calculator can be accessed by visiting: www.cmhc-schl.gc.ca/en/co/buho/buho_005.cfm

CMHC’s new ‘Ready, Set, Home’ mobile app provides consumers, particularly first-time homebuyers, with comprehensive CMHC information and tools at your fingertips. The app helps homebuyers keep track of the details throughout the home-buying process and provides access to a variety of helpful calculators, articles and other resources.
Recognizing the increasingly fast-paced, electronic and mobile environment, the new ‘Ready, Set, Home’ mobile app is a free application that offers quick and convenient access to CMHC’s extensive housing information. The app can be downloaded to your Blackberry, Android or iPhone device at: www.cmhc.ca/mobile.
These new tools are the latest additions to CMHC’s comprehensive suite of free resources available to support Canadian homebuyers

As Mortgage Brokers within Dominion Lending Centers Harmony Mortgage Brokers offer more that the average Mortgage brokers

We are Canada’s largest and fastest-growing mortgage brokerage!
We have more than 2,200 Mortgage Professionals from more than 350 locations across the country!
Our Mortgage Professionals are Experts in their field and many are ranked among the best nationally.
We work for you, not the lenders, so your best interests will always be our number one priority.
We have more than 100 mortgage programs, making it easy to choose the best fit for your unique situation.
We close loans in all 10 provinces and 3 territories.
We can process your mortgage in as few as 7 days.
We are the preferred mortgage lender for several of Canada’s top companies.

Harmony Mortgage Professionals are not your everyday average mortgage brokers!

Need a Realtor? We work with the best! Call us for a referral today!
Give us a call today 1-888-755-1126

With mortgage rates still hovering at historic lows, chances are you’ve considered breaking your current mortgage and renewing now before rates begin to rise.

Perhaps you want to free up cash for such things as renovations, travel or putting towards your children’s education? Or maybe you want to pay down debt or pay your mortgage off faster?

If you’ve thought about breaking your mortgage and taking advantage of these historically low rates, feel free to give me a call or send me an email to discuss your options.

In some cases, the penalty can be quite substantial if you aren’t very far into your mortgage term, but we can determine if breaking your mortgage now will benefit you long term.

People often assume the penalty for breaking a mortgage amounts to three months’ interest payments so, when they crunch the numbers, it doesn’t seem so bad. In most cases, however, the penalty is the greater of three months’ interest or the interest rate differential (IRD).

The IRD is the difference between the interest rate on your mortgage contract and today’s rate, which is the rate at which the lender can relend the money. And with rates so low these days, the IRD tends to be greater than three months’ interest. Because this is a way for banks to recuperate any losses, for some people, breaking and renegotiating at a lower rate without careful planning can mean they come out no further ahead.

Keep in mind, however, that penalties vary from lender to lender and there are different penalties for different types of mortgages. In addition, the size of your down payment and whether you opted for a “cash back” mortgage can influence penalties.

While breaking a mortgage and paying penalties based on the IRD can result in a break-even proposition in the short term, if you look at the big picture, you’ll see that the true savings are long term – as we know that rates will be higher in the years to come. Your current goal is to secure a long-term rate commitment before it’s too late, and here lies the significant future savings.

As always, if you have questions about breaking your mortgage to secure a lower rate, or general mortgage questions, I’m here to help!

New Homebuyer Calculator & Mobile App

Canada Mortgage and Housing Corporation (CMHC) recently introduced two new tools to help Canadian homebuyers make informed and responsible home-buying decisions – including a calculator and mobile app.

CMHC’s new Debt Service Calculator allows homebuyers to evaluate their financial situation and understand how much they can comfortably afford to spend on a mortgage. The easy-to-use calculator allows users to quickly estimate their gross debt-service ratio (GDS) and total debt-service ratio (TDS) – both important measures in assessing their financial readiness for homeownership. The Debt Service Calculator can be accessed by visiting: www.cmhc-schl.gc.ca/en/co/buho/buho_005.cfm

CMHC’s new ‘Ready, Set, Home’ mobile app provides consumers, particularly first-time homebuyers, with comprehensive CMHC information and tools at your fingertips. The app helps homebuyers keep track of the details throughout the home-buying process and provides access to a variety of helpful calculators, articles and other resources.

Recognizing the increasingly fast-paced, electronic and mobile environment, the new ‘Ready, Set, Home’ mobile app is a free application that offers quick and convenient access to CMHC’s extensive housing information. The app can be downloaded to your Blackberry, Android or iPhone device at: www.cmhc.ca/mobile.

These new tools are the latest additions to CMHC’s comprehensive suite of free resources available to support Canadian homebuyers

As a Dominion Lending mortgage broker Harmony Mortgage Group offers more than the average Broker!

We are Canada’s largest and fastest-growing mortgage brokerage!
We have more than 2,200 Mortgage Professionals from more than 350 locations across the country!
Our Mortgage Professionals are Experts in their field and many are ranked among the best nationally.
We work for you, not the lenders, so your best interests will always be our number one priority.
We have more than 100 mortgage programs, making it easy to choose the best fit for your unique situation.
We close loans in all 10 provinces and 3 territories.
We can process your mortgage in as few as 7 days.
We are the preferred mortgage lender for several of Canada’s top companies.

Need a Realtor?  We work with the best!  Call us for a referral today!

Give us a call today 1-888-755-1126

Chilliwack – Renters, heads up! You’re going to pay more! A 3.8 per cent increase in rent is coming in 2013.
Under the Residential Tenancy Act, the maximum allowable increase is lower than this year’s 4.3 per cent, but it still represents hundreds of extra dollars renters will need to spend ,to keep a roof over their heads. The rate increase is based on inflation plus two per cent.

The ongoing dispute between renting and buying. Well the above notice published by

MyChilliwacknews.com may be exactly the push you need to step out and take advantage of the great rates and low prices in the market still today in Chilliwack. It is only a matter of time we will see the impact of growth come our way, Why pay some one elses mortgage when you can pay your own and build your own equity!

Purchasing a home is one of the biggest decisions most people ever make.

Ultimately, the decision is a personal choice, but it helps to look at the pros and cons of buying to determine whether home ownership is right for you.

Some advantages of buying a home
Owning a home is generally considered to be a sound, long-term investment that can provide satisfaction and security for you and your family.

Each month when you make your mortgage payment, you are building equity in your home.
Equity is the portion of the property that you actually build through your monthly payment versus the portion that you still owe the lender.

At the beginning of your mortgage, more of your payments go toward paying off the interest and less toward paying off the principal. But the longer you stay in your home and the more mortgage payments you make, the more principal you pay off and the more equity you accumulate.

Most mortgages also offer you the option of making additional monthly or annual payments to reduce your principal faster. Some prepayment privileges, for instance, enable you to pay up to 20% of the principal per calendar year. This will also help reduce your amortization period (the length of your mortgage), which, in turn, saves you money.

There is also a tax advantage. If your home is your principal residence, any profit you make when you sell it is tax-free. A home can appreciate – or increase in value – as time passes, building more equity. As you build up equity, it’s usually easier to upgrade to a more expensive home in the future thanks to the profit you’ll make when selling your current home.

As an owner, you can also decorate and improve your home any way you like. Ownership tends to give you a sense of pride and can offer you and your family stronger ties to the community.

When making the decision about whether to buy or rent, it’s important to carefully choose a home you can afford, and then weigh the pros and cons. Millions of people enjoy the rewards of home ownership but, ultimately, it’s a personal decision based on your own priorities.

If you’re thinking of buying your first home, Tammy O’Callaghan and Carie Pool who are Dominion Lending Centres mortgage professionals can answer all of your mortgage-related questions.

Need to give notice to your landlord??

It really is never to early to start looking at options for your renewal. Harmony Mortgage Group has trained professionals who are trained experts in the field of Mortgages. We don’t like to slam banks as we all need our banks for personal loans, banking, credit cards, and lines of credit. In fact we encourage you to talk to your bank and see what options are available before coming and talking to us.
With over 40 different lenders (often even your own bank) we can find the best mortgage solution for you. This way when your mortgage term is up you have the confidence that you have made the right decision and can rest at ease knowing you received the best rate, term, and institution suited for you and your family.

Just like any area of expertise it is important that you talk with someone who not only has your best interest in mind but knows what options are available. We at Harmony Mortgage Group are specifically trained in Mortgages. This means unlike banks who only train their mortgage advisers on how to sell “their” product, we know fully and understand all the industry rules, guidelines and constant changes that can give a borrower a leg up on qualifying for a purchase, renewal or straight transfer to a new institution offering a better product.

There are situations where your mortgage comes up for renewal and the institution you are currently with is actually offering the best product for you, in this case, you get the best of both worlds, we will look at your terms, and help you decide if you are getting what you as a client deserve and often negotiate with your own institution.

Give us a call today for a free consultation. We can meet in person, talk over the phone, or simply email if you prefer. You can meet us in person in our Dominion Lending office in the Sutton Business Centre 9240 Young RD Chilliwack. call us toll free 1-888-755-1126 email us HarmonyMortgage@gmail.com

The next time you’re looking for a mortgage for that new house or you’re up for renewal on your existing mortgage, think about using a mortgage broker – their services are free and they offer you an abundance of choices the banks simply can’t compete with.

Mortgage brokers have access to a vast array of lenders – up to 90+ institutions, including some of the big banks – which enables these professionals to negotiate the best possible mortgage products and rates on your behalf. In comparison, if you approach your bank with a mortgage request, they can only offer you a narrow choice – namely, their own products.

Mortgage brokers do their homework on available mortgage products and keep themselves abreast of any new products, or changes to existing products, to ensure they find the best mortgage to fit your specific needs.

Unlike the banks, mortgage brokers can also cater to self-employed borrowers as well as those who have suffered credit blemishes due to life experiences such as divorce or illness. Brokers will listen to your story, whereas the banks have a very narrow view of what fits into their financing box – and this is unnegotiable.

If you’re thinking of buying a home, Dominion Lending Centres mortgage professionals can find the best mortgage rate and term for your unique situation.

Top Reasons for Using a Broker:
1. Choice – access to multiple financial institutions
2. Costs – using a broker is free and they can negotiate lower rates for you
3. Knowledge – brokers stay up-to-date on available products and services
4. Flexibility – mortgage products are even available for the self-employed or those who have credit blemishes

EnRICHed Academy is the first of its kind program designed to teach teens and young adults how to EARN, SAVE AND INVEST their MONEY in a way that is totally entertaining and easy to absorb.

Over the last several years, through hundreds of live speaking events at schools all across North America, EnRICHed Academy has been on a mission to teach students the key skills and lessons behind wealth creation and career success. While the topic of Financial Literacy can be dry, dull and boring, EnRICHed Academy has created an incredibly powerful program that will both educate AND entertain all of its viewers.

EnRICHed Academy is a video based program designed so that parents can watch it one section at a time with their teens/young adults and then act on the steps provided in the follow-along workbook including other learning materials. EnRICHed Academy works great for a teen or young adult to work through independently too.

Although geared to 13- 23 year olds, adults of all ages will massively benefit from the teachings covered by EnRICHed Academy.

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Take it from a single lady who just bought my first home on my own. It is both scary and empowering. You need an expert on your side.

It’s becoming increasingly apparent that a greater number of women are now taking the reigns when it comes to home purchases. There’s a growing trend among single women – and, more precisely, professional single women – who are becoming independent homeowners. While many of them may be putting off marriage, they’re not waiting around for Mr Right before taking the plunge into homeownership.

It’s believed that around 20% of homebuyers in North America are single women based on a 2011 report released by the US National Association of Realtors. Harvard University’s Joint Center for Housing Studies also released a report that said single women are buying in record numbers.

There’s no equivalent data for Canada, but an abundance of anecdotal information has led to the creation of shows like HGTV’s Buy Herself, which follows single women making their first real estate purchases.

Women are looking for ways to become financially independent, and investing in real estate and building equity for themselves are ways to invest in their future – building financial security.

Women are taking advantage of historically low interest rates and recognizing homeownership is often more affordable than renting.

Seeking expert advice
One of the amazing things about women looking to invest in real estate is that they’re getting more advice before they make the decision to enter the market. They’re seeking out mortgage experts and real estate agents, and building a plan for the perfect entry into the market. They’re making lists of areas in which they’re interested in purchasing, itemizing amenities they would need in their ideal neighbourhoods, ensuring they have all the facts around closing costs and fees associated with making the purchase, and securing a mortgage.

Buying a home is likely one of the largest purchases you’ll ever make in your lifetime, and can feel overwhelming. That’s why working with a professional mortgage agent, real estate agent, home inspector and so on is essential. You’ll be working with these professionals closely – possibly for months – so interactions should feel comfortable, and they should be knowledgeable and responsive even to the smallest question.

The more prepared you are, the smoother the experience will be so do a little research on your own over the Internet to get a good idea of what types of properties and areas are of interest to you. Make a list of questions to ask your mortgage agent or realtor – and keep it on hand so you can add to it as more questions arise.

Interest rates are the lowest they’ve been in history and they have nowhere to go but up. Industry professionals believe that as rates begin to rise, they’ll continue to rise for some time. There has never been a better time for women to make the decision to get into the real estate market to find the perfect place to call home.