Purchasing your home is one of the biggest and most important decisions that you can make. Tammy Wandzura and the team at Elite Mortgage Choice believe that buying a home should also be an exciting experience with little to NO stress. By trusting your Mortgage Broker, you are ensuring that any stress you may have had in previous encounters can be eliminated!
Tammy truly believes that all you should have to worry about is opening the door to your new home for the very first time.. Heres Tammys Latest Tip
I want to take this time- to welcome the Sunshine Back to Western Canada! Those of us in the prairies have a very hard time with days and days of rain! We will take a blizzard over a week of rain any day!
It has always very important to me to keep my past, present and future clients updated on what is happening in the Mortgage Market This June 2012 Update contains some very important changes to the Canadian Mortgage Rules as of July 9/2012.
#1 Finance Minister Jim Flaherty has made an announcement- clamping down on mortgage rules At a news conference in Ottawa, Mr. Flaherty confirmed that Ottawa will:
1. Reduce the maximum amortization period to 25 years from 30 years.
2. The maximum amount of equity homeowners can take out of their homes in a refinancing is being reduced to 80 per cent from 85 per cent.
3.The availability of government-backed mortgages will be limited to homes with a purchase price of less than $1-million
4. The maximum gross debt service ratio will be fixed at 39 per cent and the maximum total debt service ratio at 44 per cent. **Please note: This does not mean the minimum downpayment has increased. If you are buying an owner occupied home you are still eligible to put a minimum of 5% downpayment (On approved Credit)
"I remain concerned about parts of the Canadian real estate market, particularly in Toronto, but not only in Toronto," said Mr. Flaherty. "This is a judgment call. This is not written anywhere in a book about when one intervenes and when one does not intervene, but my judgment is that we need to calm particularly the condo market in a few Canadian cities."
The changes will take effect on July 9, 2012.
These are huge changes- that will significantly impact the ability for first time home buyers to qualify for new homes. Lowering the amortization from 30 yrs to 25 yrs means the income needs to be higher to qualify for a higher monthly mortgage payment.
**We are carefully assessing our rate-holds and pre-approvals on file. Please note: If you have recently been “pre-approved” please understand that the new Government rules over-rule any previous discussions or documents outlining your pre-approval limits. If you find a home, put an offer in that is accepted and we submit to the lender for approval prior to July 9- you will still qualify for the 30 yr amortization. After July 9/2012 we will be in touch with each Preapproval to advise your new purchase limits within the new rules.
Refinancing: In the past we have been able to restructure your mortgage up to 85% of the value. (this was already a decrease from 90% in the past) The new rules being implemented on July 9/2012 will now only allows us to consolidate, refinance, restructure, pull money out of your equity up to 80% of the value.
#2 FIRSTLINE MORTGAGES will officially be stepping out of the Mortgage Broker Market as of July 31/2012.
Do you have a Firstline Mortgage & what does this mean to you? Firstline Mortgages is owned by CIBC. Due to some changes in Canadian legislation Firstline Mortgages is no longer able to continue offering discounted mortgage rates to Canadian mortgage brokers. If you currently have a Firstline Mortgage – you will see no changes – as everything will simply be rolled under CIBC’s header vs. Firstline Mortgages. Given that Firstline is owned and operated by CIBC, there is no concern what so ever. My office will be in contact with you- as we feel necessary to look at re-evaluating your mortgage, at renewal time, or simply to touch base and follow up on your future financial goals with your mortgages future.
If you have any questions about your current mortgage please do not hesitate to contact our office at your leisure.
#3 Bankruptcy (“BBK”) – Consumer Proposal-Orderly payment of Debt.
I wanted to shed some light on the 3 above matters. I often have clients coming to me that have had past credit issues, and have signed into an agreement for “Consumer proposal” or “Orderly Payment of debt” with suggestion that it looks better that a “BBK” – with suggestion that it will not affect your credit for as long. Please note that all 3 of the above fall under the Bankruptcy column in the lenders eyes. After a “BBK”, Consumer Proposal or Orderly payment of debt has been filed it shows up as a Bankruptcy on your credit bureau report. The lenders require the same discipline and re-established credit regardless of which option above is taken. Most of our lenders require that you have been discharged for 2 full years & that you have 2 pieces of re-established credit SINCE the “BBK”, Consumer Proposal or Orderly payment of Debt.
#4 To summarize the above. We have seen a ton of changes to the Mortgage rules and Housing Market since 2008. Rest assured that we will continue to be consumer advocates –always working for you the consumer & assisting where we can to educate the government and other legislative bodies regarding what is realistic and not. There has been some heated conversation about why the Finance Minister is putting so many governing rules against Mortgage lending – in an attempt to lower consumer debt—when there are no rules governing the interest rates on Credit cards, department store cards, vehicle loans or even a real rule of thumb to follow in regards to who, why and how consumers qualify for these unsecure loans…which is in reality what is increasing consumer debt load.
For the past 2 years I have been running my business with 7 points of difference. Keep in mind a Broker works for you Not the Bank. Offering the best rates, service and overall experience “ Exceeding Clients Expectations”
• We treat each transaction like it's our own mortgage approval, with a passion, respect for situations, and need for quick and efficient turn around
• We strive to impress & gain the respect of our clients, exceed all of their expectations & earn their trust for future referral business
• We carry ourselves with a friendly professionalism that allows us to be easily approachable in meetings or over the phone.
• Integrity, honesty, and total transparency for the client
• Always "doing right" by the client - no matter what
• We understand the need to keep things organized, well maintained, and most importantly -the need for communication
• We don’t work “bankers” hours. We understand the need for flexibility when taking an application, meeting to sign paperwork, or general questions. We are always available for you.
• Every client & situation is unique. We are here to listen–and to assist you with a flexible mortgage product that suites the future needs of you and your family.
Remember Everytime you refer someone to me (successful or not) your name goes into a draw for a $1000.00 Travel Voucher
Call Tammy Wandzura today at 933.3386 for all of your Saskatoon mortgage needs OR visit www.elitemortgagechoice.com
Make an appointment with Tammy Wandzura at TMG, 506 Queen Street or check out her listing on the SASKATOON DIRECTORY in the SASKATOON MORTGAGES Category..she is a Trusted SASKATOON MORTGAGE BROKER Expert!
Listen to Tammys current Radio ad here! http://www.elitemortgagechoice.com/wordpress/wp-content/uploads/2012/02/SP0085.mp3
Stay Trusted my friends ..SAFE and TRUSTED of course