January Update: Recent guideline and regulation changes

General Scott Gingles 19 Jan

 

 

 

Welcome to the January issue of my monthly newsletter!

 

Real estate and mortgages dominated the headlines in 2016, and we will see much of the same in the year to come. The BoC has made significant changes to the rules and regulations in an effort to temper borrowing. Some of these changes include:

  Qualifying all high ratio mortgages at the benchmark (4.64%)​

New regulations have forced lenders to provide multiple tiered pricing (lenders now issue different rates for extended amortizations, rental properties, and high ratio mortgages)

Additional downpayment required for purchases > $500k

As recently as this week there have been two significant announcements. CMHC will be increasing default mortgage insurance premiums effective March 17, 2017. And secondly, although employment and inflation figures are strong, the BoC held the key overnight rate steady (no change to the Prime lending rate). This was somewhat expected as we wait to see what impact Trump and impending policy changes will have on our economy.

The remainder of this month’s edition looks at the new BC government down payment program, November’s home sales numbers, and what that home you bought in 2016 means at tax time. Please contact me directly with any questions or feedback.

Thanks you again for your continued support and referrals!


For more: CLICK HERE


Spring has sprung! (May 2013 Scott Gingles – DLC The Mortgage Hub Newsletter)

General Scott Gingles 8 May

To view this months newsletter click here: http://ow.ly/kQ0UB
 

 



Scott Gingles

Dominion Lending Centres - The Mortgage Hub

Phone: (604) 999-2864
Cell: (250) 808-0290
Fax: (888) 212-5402
E-mail
Website
 
Welcome to the May issue of my monthly newsletter!
 
In the spirit of spring cleaning, please take a moment this month to consider your existing mortgage. Are you optimizing your savings? If you currently hold a mortgage with a rate above 3.40% there is most definitely an opportunity to access a historicall low offer today and save!

Throughout the next 12 months you may find yourself asking the following questions:
Will I save if I consolidate my high interest credit card debt into my mortgage?
What will it cost me?
How much extra can I pay down on my mortgage every month? every year?
Can I afford to buy a second home or rental?
How can I make my mortgage interest tax deductible?
Whether you would like to learn some tips and tricks to help you become debt-free faster, or you would simply like to access a better rate, contact me today to get started!

Here are some of today's best options if you are looking for a new mortgage:

RATE SUMMARY

Variable 2.60% (Prime-.40%)
2 year fixed 2.49%
5 year fixed 2.89%*
10 year fixed 3.69%

*Additional discounts available on quick closings, some restrictions may apply, rates are subject to change without notice.

Thanks again for your continued support and referrals!
 
DID YOU KNOW...
Preparing for a mortgage will increase your chances for approval. Don’t buy or lease big-ticket items or increase debt for 6-12 months prior. Purchasing things such a new car, furniture or major appliances worsens debt-to-income ratios, which can make you ineligible for the best available loan terms.

HOMEOWNER TIPS
Exterior Renovations:

If you’re thinking of selling your home, or you simply want to spruce it up, exterior renovations can significantly increase its value and curb appeal. Aside from more expensive undertakings such as new roofing and siding, there are some projects you can take on yourself, such as creating attractive flower beds or purchasing a new front door. With each project completion, you will be happier with your home, and increase its appeal to buyer when it comes time to sell!

Seasons Greetings!

General Scott Gingles 19 Dec

December 2012
 

Scott Gingles

Dominion Lending Centres – The Mortgage Hub

Cell: (250) 808-0290
Fax: (888) 212-5402
E-mail
Website

 
DID YOU KNOW…

Credit rating mistakes are costing unsuspecting consumers thousands of dollars in higher interest rates and preventing some from getting much needed loans. Over the past few years, more than 500 complaints have been filed with provincial consumer affairs agencies across Canada about credit reporting agencies, many alleging errors by companies led to their poor credit scores.Click here for more details from CBC News.

 

HOMEOWNER TIPS

Seal Out the Cold:

In winter, reduce the heat lost from your home or workplace by getting rid of drafts around windows, doors, baseboards and outside wall openings. Windows can account for a large part of heat loss in a building. Upgrade them if they are too old. Window insulators can help keep your home warm in winter and cool in summer. Insulate power outlets and other sockets using foam pads – this is really important if the walls are not properly insulated.

 

About DLC Leasing Inc

* DLC Leasing is the leasing division within Dominion Lending Centres Inc.

* Our leasing programs provide up to 100% financing on business-related equipment.

* Leasing options include new equipment leasing; used equipment and vehicle leasing; customized solutions through vendor finance programs; and lease-backs –where the lender buys equipment from a business owner and the owner leases it back.

* Technology, heavy equipment and trailers, furniture and hospitality equipment, and manufacturing and industrial equipment are just a few examples of available leasing options.

* With access to multiple lending sources, Dominion Lending Centres’ Lease Professionals can cater to leasing deals for a variety of credit scenarios ranging from A to C credit quality.

* Because many of our Lease Professionals are also licensed mortgage agents, we can offer standard equipment leases and creatively structured solutions for seasonal, new or growing companies.

* Working with someone who is both a lease and mortgage expert enables you to even use commercial and residential mortgage and property credit line products, alone or in combination with lease financing, to help achieve the best solutions for your equipment acquisition needs.

* Our Lease Professionals can even break up large-dollar transactions into multiple leases across a number of funders to ease and simplify the approval process.

 

 
 
With 2012 coming to a close, I want to sincerely thank you for your continued support throughout the year. Please accept my warmest wishes to you and your family over the holiday season and the coming New Year!
 
 
(FINAL 2012) MARKET SUMMARY
 
Though many external factors still loom, growth in the Canadian economy is expected to pick up over the course of next year. Headlines we are watching closely include: Canadian household debt and real estate levels, uncertainty over the US “fiscal cliff”, and the euro-area debt crisis. 
 
– Canada’s gross domestic product is forecasted to grow just below 2% next year and accelerate to about 2.3 per cent in 2014.
 
– Concerns on household debt seem to be easing. On an annual basis, debt growth is at its slowest pace seen since 2002, and half the pace seen during the 2004-08 period.
 
– Canada’s housing market is showing great staying power in the face of the global economic slowdown. Mark Carney has said recently that a combination of new mortgage rules introduced by the federal government, as well as a clear tightening bias from the central bank, are working successfully together to cool Canada’s red hot housing market. Major markets are cooling as a more sustainable housing situation in Canada is within sight.
 
– Markets appear generally optimistic that there will be a positive result in negotiations to avoid the fiscal cliff in the United States. (http://www.theglobeandmail.com/report-on-business/economy/canada-faces-near-recession-if-us-plunges-over-cliff-carney-warns/article6198955/)
 
– A worsening european crisis could effect Canada through tighter financial conditions and waning confidence. A weaker global demand would negatively impact Canadian exports and commodity prices.
 
– Interest rates should increase (gradually) starting late next year as economic activity revs up.
 
RATE SUMMARY
 
Much debate has risen over the “Variable vs. Fixed” question in the latter part of 2012. Given that variable rate discounts are a thing of the past, accessing a fixed rate on a new mortgage today is a must. For those considering locking in, here are some key points of mention:
 
– We currently have access to some of the lowest fixed rate offers in history (you will often access a lower option using a broker than you would dealing with a lender directly)
 
– It’s not a question of whether rates will go up or not, it’s when, and by how much? 
 
– History has shown that it is more costly for variable-rate borrowers to wait for the first increase in prime rate before locking in. Fixed rates have often risen 50 bps or more leading up to initial rate hikes. Waiting for the 2nd increase in prime is even more costly.
 
– In the past 20 years there have been four instances where multiple 50+ bps rate hikes occurred over spans of six months or less (ie. In 2005, prime jumped 175 bps in 9 months). 
 
– For those with deep discounted variable rate mortgages, you have benefitted greatly from a low interest environment and received incredible savings. We should likely connect in the New Year and explore a plan to capture an unbelievably low fixed offer while we still can.

*Even lower “quick close” offers may be available. Rates subject to change without notice.

Variable (insured) 2.65% (Prime-.35%)
2 year fixed   2.69%
5 year fixed 2.99%
10 year fixed 3.89%
 
Visit www.scottgingles.ca to get started on an application today!
 
The remainder of this month’s edition looks at the latest research report on the state of Canada’s residential mortgage market, as well as suggests some home maintenance, repair and security tips. Please let me know if you have any questions or feedback regarding anything outlined below.

Please take moment to click and “LIKE” us on facebook…

Thanks again for your continued support and Happy Holidays!

 

 

Interviews this fall with more than 2,000 Canadians indicate that those holding mortgages are comfortable with their debt, a majority plan to pay off their mortgage in less than 25 years and at least one-third are taking advantage of current low interest rates to accelerate payments, according to the most recent survey report from the Canadian Association of Accredited Mortgage Professionals (CAAMP) released in late November entitled Annual State of the Residential Mortgage Market in Canada.

Following are some key statistics revealed in the report:

  • Among all mortgage holders, 65% have fixed-rate mortgages, 28% have variable-rate mortgages and 7% have a combination. For mortgages in 2012, there has been a significant shift to fixed-rate mortgages – 79% are fixed, 10% are variable and 11% are a combination of both.
  • 68% of mortgages obtained during 2012 have amortization periods of 25 years or less.
  • 32% of mortgage holders are making significant efforts to accelerate repayments, including taking one or more of the following actions in the past year: 16% have voluntarily increased their monthly payments; 15% have made a lump-sum contribution to their mortgage; and 6% have increased their payment frequency.
 
  • For mortgages that have been repaid since the 1990s, actual repayment periods have generally only taken two-thirds of the contracted periods.
  • Among borrowers who took out a new mortgage in 2012, a record 47% obtained it from a mortgage broker.
  • The average mortgage interest rate is 3.55%, which is lower than last year’s average of 3.92%.
  • Among mortgage borrowers who have renewed a mortgage this year, 61% experienced a reduction in their interest rate.
  • The average actual rate for five-year fixed-rate mortgages is 1.85 percentage points lower than typical (posted) rates in 2012.
  • There has been a considerable amount of locking-in (converting from variable rate to fixed rate). Among the 3.85 million Canadian homeowners with fixed-rate mortgages, 13% locked in during the past 12 months.
  • Of the 9.7 million homeowners in Canada, 5.95 million have mortgages and 3.75 million are mortgage-free.
  • 87% of Canadian homeowners have 25% or more home equity.  

As always, if you have any questions about the information above or your mortgage in general, I’m here to help!

 

 

Once you’ve settled into your new home, you may start seeing things you’d like to change or repair. Maintenance, repair and renovations are a normal part of homeownership. One of the best things you can do is get to know your home.

Every adult member of your household should know the location of the following:

  • Main shutoff valves for water, fuel and natural gas
  • Emergency switch for the furnace or burner
  • Hot water heater thermostat
  • Main electrical switch
  • Fuse box or circuit breaker box

Home Improvements 
Home improvements can make a home more pleasant to live in and may also increase its value.

Here are some things to keep in mind:

  • Think about changes that would appeal to someone buying your home in the future
  • Updating the bathrooms and kitchen in an older home can increase its resale value
  • Updating the paint on the outside of your house, installing a new roof, redoing your walkways and driveway, adding attractive mailboxes and landscaping will improve your home’s appearance
  • Some renovations can pay for themselves, especially if they result in savings on utility bills, a higher selling price or years of greater comfort and enjoyment in your home
  • Think about improving your home’s energy efficiency for comfort and savings
 

Secure your new investment

  • Change all the locks when you buy a new home
  • Add dead-bolt locks and window locks where necessary
  • Consider getting a security system
  • Use outdoor lighting. You can get lights that automatically turn on every evening or motion-sensor lights that come on when someone walks by
  • When you’re away from home, use lights and radios on automatic timers, and arrange to have your mail and newspapers picked up or stopped
  • Get to know your neighbours and keep an eye out for each other

Be prepared and stay safe 
When you move into a new home, it’s always important to:

  • Have a fire evacuation plan and make sure everyone in your home knows how to safely get out of the home from every room
  • Ensure that fire extinguishers are easily accessible at all times (there should be one on each floor)
  • Locate and test the smoke detectors in your home every six months
  • Locate and test the carbon monoxide detectors. They’ll detect high levels of carbon monoxide in your home, and can save you from illness or death
  • Make sure that any fire hazards, such as paper, paint, chemicals and other clutter are stored in a safe place
  • Collect your important papers and store them in a safe place
  • Keep a list of emergency numbers close to the phone and make sure your children are familiar with the list

For more information on home renovation, maintenance and safety, visit: www.cmhc.ca.

 

 
  • 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.
  • Dominion Lending Centres’ Mortgage Professionals are available anytime, anywhere, evenings and weekends – and we’ll even come to you!
 

 

Check out my November news letter for all your latest market/rate updates!

General Scott Gingles 13 Nov

November 2012
 
Scott Gingles
Phone: (604) 999 2864
Fax: (888) 212 5402
scott@themortgagehub.ca
www.scottgingles.ca

 
DID YOU KNOW…

Ottawa is stepping in with new rules for the largely unregulated prepaid credit card market. Finance Minister Jim Flaherty announced late last month that in the future, issuers of prepaid cards will not be able to impose expiry dates, and must be upfront about hidden fees and conditions. The move is part of the government’s expanding code of conduct measures to govern credit and debit transactions that had previously not applied to the relatively new prepaid market. Click here to read more from The Star.

HOMEOWNER TIPS

Reduce Heating Costs:

Your furnace or boiler is a large energy user. Consider:

– If health permits, keeping your thermostat at 20°C or below

– Lowering your thermostat at night and when no one’s home

– Checking the furnace filter once a month during the heating season (change or clean when dirty)

– Having a professional tune-up of your heating system at least every other year

– Replacing your older furnace with a higher efficiency model

About DLC Leasing Inc

* DLC Leasing is the leasing division within Dominion Lending Centres Inc.

* Our leasing programs provide up to 100% financing on business-related equipment.

* Leasing options include new equipment leasing; used equipment and vehicle leasing; customized solutions through vendor finance programs; and lease-backs –where the lender buys equipment from a business owner and the owner leases it back.

* Technology, heavy equipment and trailers, furniture and hospitality equipment, and manufacturing and industrial equipment are just a few examples of available leasing options.

* With access to multiple lending sources, Dominion Lending Centres’ Lease Professionals can cater to leasing deals for a variety of credit scenarios ranging from A to C credit quality.

* Because many of our Lease Professionals are also licensed mortgage agents, we can offer standard equipment leases and creatively structured solutions for seasonal, new or growing companies.

* Working with someone who is both a lease and mortgage expert enables you to even use commercial and residential mortgage and property credit line products, alone or in combination with lease financing, to help achieve the best solutions for your equipment acquisition needs.

* Our Lease Professionals can even break up large-dollar transactions into multiple leases across a number of funders to ease and simplify the approval process.

 

 
Welcome to the November issue of my monthly newsletter!

The 2012 US Presidential Election is in the books, and many Canadians want to know how Barrack Obama’s re-election will affect us at home. There are a few key issues facing the President in the immediate future that have potential spillover effects to Canada. They are:

  1. The “Fiscal Cliff”: with the White House (Democrat) and Congress (Republican) divided, a plan to cap Government spending and control the US deficit was put into place in August 2011. This plan expires December 31st, 2012. What it means is that unless Congress and Obama’s administration can strike a new agreement, US businesses and consumers will be hit with tax increases and a reduction in Government spending simultaneously which will hurt their economy’s gathering momentum (and ours).

  2. The Keystone XL Pipeline: Proposed in 2008, the project has been put on hold while environmental concerns were to be addressed, the pipeline now has a new route and will remain a central issue in Canada-US economic relations.

  3. The US Economy: Whether we like it or not, we are inextricably tied with the US as neighbor’s and trading partners. A strong US economy benefits Canada. Many hope that a second term will force the Republican controlled House and the Democratic White House to seek more compromise on issues to help spur on the US Economy.

 

MARKET SUMMARY

  • While CMHC is reporting a definite softening in the Canadian housing market (led primarily by Vancouver and Toronto), CIBC Economist Benjamin Tal reports that any fear of an American style housing crash reflects a deep misunderstanding of credit landscapes between Canada and the pre-crash environment in the US.

  • Canadian Businesses are still holding on to cash reserves with a “wait and see” attitude pending the resolution of the US “Fiscal Cliff” issue. A positive resolution there could spur business investment providing some stimulus to both economies.

  • The Bank of Canada held rates steady for the 25th consecutive month and revised its growth projection for Canada upwards to 2.2% (from 2.1%). The economy is still being held back by flagging demand of our Exports from Europe and China. Foreign demand is pegged to reach pre-recession levels by early 2014.

  • The OECD has some good news for Canadians: our country is being viewed among the world’s leading economic lights over the next 50 years. 

There are a couple new lending guidelines to report effective November 1st:

  • Low ratio mortgages are now qualified at the BOC Benchmark Rate (5.24% today) for terms less than 5 years. “Conventional” mortgages were previously qualified at the 3 year rate. 

  • No longer will cash-back from lenders be eligible to be used for down payment and some lenders will no longer accept any form of borrowed down payment.


Now more than ever, securing a mortgage can be an overwhelming experience. Without the help and guidance of a qualified individual, the process can involve hours of research and education before you make the largest financial decision of your life.  Using a mortgage broker will save you two of your most valuable resources: Time and money. 

With the market conditions softening and mortgage products tightening, it may be your last chance to access record low rates and consolidate your high interest unsecured debt. Call on me today to discuss any one of the incredible savings opportunities listed below:

 
RATE SUMMARY
*rates subject to change without notice
 
 
5 year variable 2.65% (Prime-.35%)
2 year fixed   2.69%
5 year fixed 2.99%
10 year fixed 3.89% 
 
 
Visit www.scottgingles.ca to get started on an application today!
 
The remainder of this month’s edition compares collateral and standard charge mortgages, as well as offers some handy maintenance tips for the fall and winter seasons. Please let me know if you have any questions or feedback regarding anything outlined below.
 
  

Please take moment to click and “LIKE” us on facebook…

Thanks again for your continued support and referrals!

 

 

Since an increasing number of lenders are moving towards collateral charge mortgages these days, it has never been more important to understand the differences between a collateral and standard charge mortgage.

The primary difference is that a collateral charge mortgage registers the mortgage for more money than you require at closing. For instance, up to 125% of the value of the home at closing with TD Canada Trust or 100% through ING Direct and many credit unions, instead of the amount you need to close your transaction (as is the case with a standard charge mortgage).

The major downside to a collateral mortgage becomes evident at your mortgage renewal date. For borrowers who want to keep their options open at maturity and have negotiating power with their lender, this isn’t the best product feature because collateral charge mortgages are difficult to transfer from one lender to another.

In other words, if you want to change lenders in order to seek a better product or rate in the future, you have to start from the beginning and pay new legal fees, which range from $500 to $1,000. With a standard charge mortgage, in most cases, the new lender will cover the charges under a “straight switch” in order to earn your business.

 

In addition, with a collateral charge, it could be difficult to obtain a second mortgage or a home equity line of credit (HELOC) unless your home significantly appreciates in value.

Lenders offering collateral charge mortgages promote the benefit that it makes it easier and more cost effective to tap into your equity for such things as debt consolidation, renovations or property investment. There’s no need to visit a lawyer and pay legal fees – the money is available as your mortgage is paid down. Yet, if you read the fine print, you may still have to re-qualify at renewal.

A standard charge mortgage gives you the ability to move to another lender at renewal should you want to without incurring legal fees, and many borrowers find it more beneficial to keep their options open. If you need to borrow more with a standard charge mortgage, you have the option of a second mortgage or a HELOC, which also enables you to take money out as your mortgage is paid down.

Navigating through the mortgage process alone can be tricky. Working with a mortgage professional who has access to multiple lenders will help ensure you receive the product and rate catered to your specific needs.

As always, if you have any questions about the information above or your mortgage in general, I’m here to help!

 

Fall is the perfect time to get your home ready for the coming winter, which can be the most gruelling season for your home. During winter months, it’s important to follow routine maintenance procedures, by checking your home carefully for any problems that may arise and taking corrective action as soon as possible.

Fall

  • Check fireplace and chimney; service or clean if needed
  • Clean range hood filter
  • Clean leaves out of eavestroughs
  • Check roofing and flashing for signs of wear or damage
  • Close outside hose connection
  • Close windows, skylights
  • Check weather-stripping around doors and windows
  • Clean and reactivate heat recovery ventilator, if it was turned off
  • Winterize landscaping
  • Test space heating system
  • Close vents to crawl spaces
  • Test your smoke alarms; change the batteries at least once a year

Winter

  • Clean or replace furnace filter
  • Check/clean heat recovery ventilator; wash or replace filter
  • Clean humidifier and turn it on if needed
 
  • Check exhaust fans
  • Ensure that air intake, exhausts and meters are clear of snow
  • Clean range hood filter
  • Check basement floor drain
  • Do safety checks: fire escape routes; fire extinguishers; door and window locks
  • Ensure gas valve is clear of ice and snow

Annually

  • Dust or vacuum electric baseboards
  • Vacuum ducts behind warm air and return air grilles
  • Test plumbing shut-off valves to ensure they’re working
  • Test pressure relief valve on hot water tank; drain water from tank
  • Check and, if needed, oil door hinges
  • Lubricate garage door motor, chain, etc
  • Check attic for signs of moisture in summer or fall
  • Check septic system; clean if needed (usually about every three years)

Every Two to Five Years

  • Check and repair driveway cracks
  • Check and repair the chimney cap and the caulking between the cap and chimney, re-caulk as necessary
  • Refinish wood surfaces, including window frames and doors

For other great home maintenance tips, visit:www.cmhc.ca.

.

 
  • We are Canada’s largest and fastest-growing mortgage brokerage!
  • We have more than 2,000 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.
  • Dominion Lending Centres’ Mortgage Professionals are available anytime, anywhere, evenings and weekends – and we’ll even come to you!
 

 

DLC The Mortgage Hub – December Newsletter

General Scott Gingles 12 Dec

We currently have access to the strongest FIXED RATES we have seen in years (and may EVER see), yet many Canadian mortgage holders have yet to take advantage of this opportunity…

(CLICK TO READ MORE)

DLC The Mortgage Hub October News & Rate Advisory

General Scott Gingles 12 Oct

Ebbs and flows of global economic news & reporting have analysts guessing as to what the future may hold with 
regards to bond yields and rates. 

Last week some were convinced that Greece would fall short of fiscal targets and were certain to default, yet this 
week governments pledge efforts to avoid a default by any member nation. Most of the news from Europe has 
overshadowed the relatively good US and Canadian economic data, mainly that the US will avoid a double dip 
recession.

One thing seems for certain, low rates will remain the theme for some time to come. We have lost some
discounting on variable rate mortgages, yet fixed rates seem to be holding steady near historic lows. 
For those of you in a Variable Rate Mortgage, BMO Capital Markets recently pushed their rate hike forecast 
back to 2013, citing continued serious economic risks both home and abroad.

Rate Advisory:
5 year fixed 3.29%
5 year variable Prime-.40% (or 2.60% today)
*rates are subject to change, and further discounted quick close rates may be available.

Please contact me directly to discuss your mortgage options today!

And don't forget to Like Us...to keep up to date on mortgage news and highlights.

Check out the rest of this month's newsletter: http://ow.ly/6VfED 
Thanks again for your continued support and referrals!