24 Aug

BUYING A HOME AS A NEW CANADIAN

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Posted by: MANJIT SINGH BHONDHI

Canada is made up of hundreds of thousands of people, and while some did not start here, they have made it their home. Buying a home, especially when you are new to Canada can be mind boggling, BUT, we have a mortgage for you!
The New to Canada Program is designed to help new Canadians purchase their first home sooner and become established faster.
What are the qualifications for this program?
Firstly, you must have immigrated or relocated to Canada within the last 3 to 5 years to qualify for the New to Canada Program. You must have proof that you have been working full time in Canada for at least 3 months and that you are not on probation with your employer. The lender will require a letter of employment from your employer with your salary and employment status. Copies of your valid work permit or landed immigrant status card (front and back) will also be a requirement.
Down payment is a minimum of 5% and at least 5% of the funds must come from your own savings and be verifiable with 3 months worth of bank statements from a Canadian Bank. Some lenders will allow the 5% to be a gift from an immediate family member and a gift letter from the lender will be required. Please speak to your broker in advance when a gift is being used. That way we can provide you with information for monies coming from other countries and ensuring you are following all the banking rules and regulations. With a minimum of 5% down payment you will need default insurance, and that can be provided by Canada Guaranty, Genworth or CMHC (Canada Mortgage and Housing). Each of these insurers offer programs that will work with the lender.
The lender will need to see your credit bureau and, as you are new to Canada, you may be just starting so we will require an international credit report from your country of origin. Just starting up your credit, we can assist you with that by providing valuable information to get you ready for the road to home ownership. You can obtain an International or U.S. Bureau by contacting Equifax and they will point you in the right direction. Your international credit report is taken into consideration by the lender as it will show that you are a responsible borrower and have kept your accounts in good standing. We would advise that a letter of recommendation from your current bank be done as that is also very helpful in the process. If you cannot provide an international credit bureau, the lender will ask you for to confirm your good standing by providing 12 months history of bills that must be paid on time (rent, utilities, cable or insurance premiums).
Working with your Dominion Lending Centres Mortgage Professional will provide you with options and answers to your questions. Our advice is always free, we are here to help you make home ownership a reality.
Remember, when looking for your home, use a professional to assist with not just financing but the search as well. Realtors are great negotiators and can also help you determine your requirements in a home, “needs vs wants”. Do you need to be close to schools, public transportation, etc?
This process can take some time but again, that is why you have a DLC broker at your fingertips!
By the way, welcome to Canada!

23 Aug

TOYS AND BUYING A HOME

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Posted by: MANJIT SINGH BHONDHI

In 2005, I was asked to do a pre-approval by a couple hoping to buy a home. I went through the application with them and pre-approved them for $320,000. They were astounded. They told me that their bank told them that they were qualified to a maximum of $260,000. They wanted to know how I could get them more money. I looked at their credit reports and quickly found the answer.

I pointed out to them that they both had $10,000 unsecured lines of credit. They said that the bank had offered this to them several years ago but they had not used them. The zero balances confirmed their story. What they didn’t know was according to the bank’s rules, they had to consider these lines of credit as being fully utilized. The bank considered them as each carrying $300 in monthly payments that did not exist. My lenders took a zero balance as being a zero balance and I was able to get them more money and more house.

Last year I had a young man who wanted to buy a new home. He was very surprised when I told him he couldn’t afford it according to the new stress test rules. The reason being, he had a $950 a month truck payment. The only solutions available were to sell the truck, or negotiate a new payment plan by stretching out the payments for another year.

The moral of the story is that it’s important to let clients know that other debts outside of their mortgage can affect how much house they can qualify for, and that buying a vehicle or new toys like a trailer or boat before going to see their local mortgage broker, can be a costly mistake. Your Dominion Lending Centres mortgage broker can help you through the whole home buying process but you need to have them involved early in the process. Our job is to make people’s dreams come true and we do it a lot better than the banks.

22 Aug

7 SURE-FIRE WAYS TO GROW YOUR CREDIT SCORE

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Posted by: MANJIT SINGH BHONDHI

Have you ever wished for a simplified guide on how to actually GROW your credit score? Well today is your lucky day! We have had years of experience working with individuals who come to us with poor or damaged credit and we have found 7 steps that prove to be tried and true in fixing it.

First off though—why are we so focused in on credit scores? Simply put, your credit score details your history of borrowing money. It shows how timely you are on payments; how responsible you are with it and how you manage it.

In a Nutshell: Your credit score represents to the lender that you have proven yourself capable of paying your bills on time and are responsible when managing credit. You credit score will also impact the interest rate that you receive. So, when we are talking about mortgages, your credit score=very important.

Now that we have that covered, here are our 7 sure-fire ways to grow your credit and make the mortgage application process, a breeze:

1. Have at least 2 credit lines at all times
This means that you should always have 2 “tradelines” going. Whether this be 2 credit cards, a credit card and a line of credit and a car loan etc. You want to show that you can manage credit, and this is one easy way to do it. As an added note, the limit on the credit lines will need to be set at a minimum $2,000.

2. Make your payments on time each and every month
No skipped payments! You should ALWAYS make the minimum payment required on all your lines of credit each month.

3. Do not let your credit be pulled too often.
This one is something people often forget about. Having your credit pulled for new credit cards, car loans, and other things frequently raises a red flag for lenders and can significantly lower your credit score

4. Do not exceed 50% of the available credit limit on your credit card or credit line.
We know this one can be hard to do. One easy way to monitor this is to only use a credit card for certain fixed bills such as a cable/internet bill, cell-phone bill, etc. This way you can easily keep track of what credit you have used and what is available still.

5. If you have missed a payment, get back on track right away.
If you did, by chance, miss a payment, do not fret. Instead, get back on track with your month by month payments. Lenders would look at the one missed payment as an abnormality versus a normal occurrence if you are back on track by the following month.

6. Make sure each partner has their own credit.
We cannot tell you how frustrating it can be for couples when they realize that all their credit cards and lines of credit are only under one name…leaving the other person with no proven track record of managing credit! We advise clients to both grow their credit by making sure all joint accounts report for you both.

7. Do not exceed the Credit limit.
It is important to not go over or exceed the credit limit you have been given. Having overdrawn credit, shows the lender that you are not able to responsibly manage credit.

If you follow these 7 steps and are responsible with your credit, you will have no problem when it comes time to purchase a home! In need of more advice? Contact a Dominion Lending Centres Broker-they will be more than happy to help you.

21 Aug

5 GREAT REASONS TO PROVIDE A 20% DOWN PAYMENT WHEN BUYING A HOME

General

Posted by: MANJIT SINGH BHONDHI

There are many challenges that come into play when you’re in the market to buy a home.
Buyers say the number one obstacle to home ownership is saving enough for a down payment, the amount that the buyer provides toward the purchase of their home.
Exactly how much do you need to put down? Assuming you can finance the debt with your current income you can get a mortgage for as little as 5% down PLUS pay for Mortgage Default insurance if you put less than 20% down.
A smart rule of thumb is always try to put a least 20% down. Although that may be a challenge in Greater Vancouver where the current Vancouver MLS stats indicate an average house price of $1,227,420

1. Easier to service your debt. Putting 20% down reduces the size of your monthly mortgage payment, making you more likely to qualify for and afford, your mortgage. Lenders want to make sure you can service your debt with your current income using 2 rules:
o Rule #1 – GROSS DEBT SERVICE (GDS) Your monthly housing costs are generally not supposed to exceed 35-39% of your gross monthly income. Housing costs include – your monthly mortgage payment, property taxes and can include heating. If you are buying a condo/townhouse with strata property then the GDS will also include ½ of your strata fees.
Principle + Interest + Taxes (+ 50-100% Strata Fees if applicable) Gross Income

Rule #2 – TOTAL DEBT SERVICE (TDS) Your entire monthly debt payments should not exceed 40-44% of your gross monthly income. This includes your housing costs PLUS all other monthly payments (first mortgage, property taxes, maintenance fees, additional financing, car payments, charge accounts, etc.).
(Principle + Interest + Taxes) + Other Payments Gross Income

2. A Smaller Monthly Mortgage Payment! You pay LESS!! I’m all about making smaller mortgage payments and having money for the fun stuff in life. More money down means, you borrow less money, which means you will have a smaller mortgage, which means you have smaller, more affordable mortgage payments.

3. No private mortgage default insurance. Putting 20% down allows you to avoid paying for mortgage default insurance.
o In Canada, mortgage insurance is required federally on high-ratio mortgages (a down payment of less than 20%). This insurance, which protects the bank/lender in case the borrower defaults, gives lenders the flexibility to offer homebuyers with low down payments the same low interest rates they would offer to homebuyers with more equity.
o Mortgage insurance premiums are based on the amount of the mortgage. The higher the loan-to-value ratio, the higher the premium cost. In other words, the lower your down payment, the more expensive the insurance. This premium may be paid in cash in a lump sum upon closing, it is usually added to the mortgage amount and paid over the length of the mortgage.
o Canadian Mortgage & Housing Corp. (CMHC) and Genworth Canada provide mortgage default insurance. Click on CMHC or Genworth for the sliding scale, the bigger your down payment the less insurance you pay. Once you hit a 20% down payment, mortgage default insurance is no longer mandatory.

4. Pay Less Interest over the Life of the Loan. You pay less interest with 20% down payment, since you’re putting more money on the house compared to if you put 5% or 10% down.

5. Instant Equity Building. A significant down payment builds instant equity in your home. A 20% down payment immediately puts equity into a home when you purchase it. That down payment gives you some cushion, in case the market takes a downward turn.

If you have any questions contact a Dominion Lending Centres mortgage professional near you.

7 Aug

WHAT IS A MONOLINE LENDER?

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Posted by: MANJIT SINGH BHONDHI

What usually follows once someone hears the term “Monoline Lender” for the first time is a feeling of suspicion and lack of trust. It’s understandable, I mean why is this “bank” you’ve never heard of willing to loan you money when you’ve never banked with them before?

In an effort to help you see the benefits of working with a Monoline Lender, here is some basic information that will help you understand why you’ve never heard of them, why you want to, and the reason they are referred to as lenders, not banks.

Monoline Lenders only operate in the mortgage space. They do not offer chequing or savings accounts, nor do they offer investments through RRSPs, GICs, or Tax-Free Savings Accounts. They are called Monoline because they have one line of business- mortgages.

This also plays into the reasons you never see their name or locations anywhere. There is no need for them to market on bus stop benches or billboards as they are only accessible through mortgage brokers, making their need to market to you unnecessary. The branch locations are also unnecessary because you do not have day-to-day banking, savings accounts, investment accounts, or credit cards through them. All your banking stays the exact same, with the only difference of a pre-authorized payments coming from your account for the monthly mortgage payment. Any questions or concerns, they have a phone number and communicate documents through e-mail.

Would it help Monoline Lenders to advertise and create brand awareness with the public? Absolutely. Is it necessary for them to remain in business? No.

Monoline Lenders also have some of the lowest interest rates on the market, the most attractive pre-payment privileges, and the lowest pre-payment penalties, especially when compared to a bigger bank like CIBC or RBC. If you don’t think these points are important, ask someone whose had a mortgage with one of these bigger banks and sold their property before their term was up and paid upwards of $12,000 in penalty fees. An equivalent amount with a Monoline Lender would be anywhere from $2,000-$4,000 in fees.

Monoline Lenders are not to be feared, they should be welcomed, as they are some of the most accommodating and client service-oriented lenders around! If you have any questions, contact your local Dominion Lending Centres mortgage professional today.

25 Jul

HOMES FOR HEROES – OUR HOUSE MAGAZINE

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Posted by: MANJIT SINGH BHONDHI

David Howard, left and Murray McCann, right, co-founders of Homes For Heroes stand with Mustard CEO Steve Wile as they display designs for tiny homes that will be built for veterans in a new community in Bridgeland. The Mustard Seed will provide support services through an onsite resource centre. The organization made the announcement on Wednesday April 18, 2018. Gavin Young/Postmedia


A Calgary-based charitable foundation is set to break ground on a first-of-its-kind development aimed to help Canadian veterans, one tiny home at a time.

If Dave Howard had his way, the tiny home community project he has planned to help house homeless military veterans in Calgary would be in every major city across Canada.
As the president and co-founder of Homes for Heroes Foundation, a non-profit society, his idea is actually a pretty simple one. Take roughly 20 or 30 tiny homes, about 300 square feet in size, put them together on a small piece of land in the city and offer services like counseling and resources to help these war heroes get back on their feet.

Howard’s vision took a big step forward this spring when Homes for Heroes Foundation announced the first-of-its-kind community would soon break ground in Calgary’s Bridgeland community, on sub-leased land from the Canadian Institute for the Blind.

The first village will feature 20 tiny homes, a resource centre, and community gardens. Each tiny home will also include a memorial plaque in honour of a Canadian soldier who lost their life serving in Afghanistan.
The project for Howard is the culmination of a dozen years of charitable involvement in helping veterans in his community. And it’s definitely personal.

He became dedicated to the plight of veterans after an overnight stay with his estranged grandfather, a former Navy member. At the time, his grandfather was sleeping on a coach in a 200 square-foot room, having battled alcoholism once he returned to civilian life. While Howard explained his grandfather worked his way up to be president of a major company, he came back from service suffering from shell shock and fell all the way to the bottom because of alcohol.

Howard discovered is grandfather, who by this time was a security guard for the building of the company he was formerly president, had resorted to eating dog food out of can, and it shook him to the core.
“I realized there needed to be something done differently for veterans that are living in poverty and to help them get out of that.”
So 12 years ago, Howard started the Canadian Legacy Project which was tasked with advocating for Canadian veterans and creating programs to improve their lives.
The organization then partnered with Murray McCann and McCann family Foundation, a charity that funds a number of initiatives including the Field of Crosses Memorial Project and the placement of 500 crosses in a park on Memorial Drive, near downtown Calgary. Out of that partnership came Homes for Heroes.

Howard said they started looking at was being done for the veterans struggling to return to civilian life, and there wasn’t much. There were scattered facilities, but he found none that were offering full support services.
That’s when the two organizations came up with the idea of a community of tiny homes. As Howard explained, when veterans get accepted into the community, they’ll go through a detailed needs analysis and be provided counseling to help them get back to civilian life. The eventual goal is to have them get back to work and into a more permanent housing solution. Calgary-based The Mustard Seed will manage the social services, while residents will pay about $500 a month rent to live in each unit. Howard noted the rent will help cover the cost to maintain the community.

He said these 300 square foot units will have all the amenities of a larger home, but are also the perfect size for someone coming off the streets.
“The idea is for them to have their own space that is significant enough to have a guests over but it’s also part of a community,” Howard said, adding he believes the problem of homeless veterans could be solved within six years with this type of community.

There are an estimated 2,500 homeless veterans in Canada, and another 160 in Calgary. However, Howard believes the number is much higher suggesting most veterans don’t like to self-identify out of pride and fear of losing what benefits they might have.
There are plans for a second community in Calgary and also one in Edmonton. The first project is expected to cost about $2 million to build and another $500,000 in a trust to keep the community operating in the future. Much of the funding comes from private companies including a $1.5 million donation from ATCO, an Alberta-based energy and logistics company.

Howard is confident the model could work cross the country and he’s hoping to eventually see two tiny communities helping veterans in each major city across Canada. And he’s urging municipalities across the country to take note of the model, noting cities would only need to lend a portion of unused land for a few years. The communities can be erected and then dismantled in only a few short months.
“It is an answer to a lot of other issues,” he said. “This can fit a lot of demographics and I think municipalities would be wise to look at it and say ‘we should be doing this.’”

The project is drawing praise from local organizations that work with veterans, including Calgary’s Royal Canadian Legion Poppy Fund.
John Rathwell, the general manager of the poppy fund and veteran’s food bank, believes the model will be successful in helping veterans get back on their feet.
“Veterans are a proud sort, no veteran I know likes to ask for help,” he said. “This assistance, giving them a place of purpose and even training and support within their own pier groups… can help them move on whether it be through job counseling, mental and physical issues, and just giving them a sense of belonging.”
“This place will be important because it will now be a place they can call their home,” Rathwell said. “They were living on the streets where nobody knew or cared who they were and they’ll be able to take pride and help regain their self-esteem and be able to successfully transition back into civilian life.”

24 Jul

REFINANCES, RENEWALS, & TRANSFERS

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Posted by: MANJIT SINGH BHONDHI

After you have acquired your new home, shut on your new home loan, and are altogether moved in, what comes straightaway?

Indeed, with regards to your home loan, the following stage is to either renegotiate, restore, or exchange your home loan. This choice can be made multi month into your new home loan or multi month before your new home loan is set to develop. The following is a separate on what a renegotiate, recharging, and exchange mean.

Refinance

Refinances are the point at which you choose to get to the value in your home. At the point when your home ascents in esteem, say $400,000 in 2016 to $500,000 in 2021, you can ask for your present bank, or another loan specialist, to pay you a bit of that expansion in trade and they will out turn add that same segment to your home loan for you to pay back-with premium.

There are numerous motivations to renegotiate; for home repairs, acquiring second properties, monetary help with other extraordinary credits or to approach money for bigger buys. It is just a renegotiate when you change the measure of your home loan and acquire against the value you have in your home.

Renewal

Renewals are very straight forward. Toward the finish of your home loan term, your moneylender will offer you a restoration letter expressing the rest of the adjust on your home loan, what the rest of the amortization is, and what financing cost choices they can offer you.

The term can be 5-years for instance, however most home loans are on what’s known as a 25-year amortization-the time allotment it takes to pay off the whole home loan. The 5-year term is only a period of time you are ensured a specific rate before you have to reestablish it. Reestablishments for the most part don’t require any re-endorsement, archives, or applications as no new cash is being included, the property is the same, as is the moneylender. It is straight forward and enables you to keep paying your home loan, just on an alternate financing cost.

Exchanges

Exchanges are a considerable measure like recharges, the one contrast is you are exchanging loan specialists. You are not including more cash, offering or purchasing another home, everything is continuing as before aside from your identity paying enthusiasm to. One reason somebody might need to exchange their home loan starting with one moneylender then onto the next is terrible client encounter. Another could be to exploit a lower financing cost. Another reason could likewise be to exploit a loan specialist’s item similar to a Home Equity Line of Credit or high pre-installment benefits.

Exchanges are winding up increasingly basic as loan specialists are always hoping to add customers and clients to their image, having the capacity to exploit intrigue installments and additionally offer different items.

On the off chance that your home loan is up for recharging or you have been pondering what sort of choices might be accessible to you with your present home loan, if you don’t mind contact a Dominion Lending Centers contract proficient to talk about the diverse decisions you have.

18 Jul

REMODELING YOUR HOME THIS SUMMER?

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Posted by: MANJIT SINGH BHONDHI

With most of the summer still ahead, it seems like the best time for rest and relaxation. Or… it could mean the perfect opportunity to make those changes around the house that they have been waiting to do since the Spring!

A renovation or remodel on your home could mean excellent returns on your investment. We’ve all seen the TV shows, like Fixer Upper or Love It or List It on HGTV, that demonstrate just how far a fresh coat of paint and decluttering can go to help raise the value of your home when trying to sell it. Sometimes a renovation budget can be as easy as a can of paint but there are other times that you need to add an extra bathroom or bedroom which cost substantially more.

Whatever the reason for your renovation, the question remains: how do everyday people get the money for these fixer-upper projects?

CASH OR CREDIT

For renovations under $5,000, you could probably pay cash or with your credit card. Saving up for these smaller renovation projects can prove very lucrative over the long term, especially if you want to make your everyday living experience a little more comfortable and/or are trying to increase your property value. As we’ve seen on the home renovation shows, the money that is invested in the renovations is likely going to see returns when selling a home.

For projects over $5,000, the projects are more elaborate and may or may not see the types of returns the smaller upgrades can. (Here’s an article with examples of renos that add value, and those that don’t.) However, they mean a lot for your living conditions. When considering these larger projects, there are a number of ways you could find the means to pay for them.

PERSONAL LOANS

The banks will likely suggest a Personal Line of Credit for these types of projects, however, you could also apply for a personal loan from the bank. The personal loan usually has a lower interest and can be paid off through regular payments in a few years. The line of credit may be better suited for ongoing or long-term projects, where you can access funds as you need them, and pay interest only on the amount used.

SECURED LINE OF CREDIT & HOME EQUITY LOANS

A secured line of credit is another option for bigger renovation projects. To secure one, you will likely need a credit score at or above 700 and have a good history of repaying debts in a timely fashion. They offer the advantages of regular lines of credit and loans, plus they often come with preferred interest rates. Since they will likely be secured by your home’s equity, they will require some set-up costs, such as legal fees.

For seniors looking to make adjustments to their home, they can apply for SHARP, the Seniors Home Adaptation and Repair Program. It provides low-interest home equity loans to help seniors with the necessary repairs, adaptations and renovations to their homes, up to a maximum loan of $40,000. In order to qualify, seniors need to have an annual total income of $75,000 (or less) and a minimum of 25% home equity in their primary residence.

MORTGAGE REFINANCING

Refinancing your mortgage may offer some advantages when looking to complete larger-scale renovations to your home. With mortgage interest rates still relatively low, much lower than those on a credit card or loan, refinancing may be an advantageous option. When refinancing, you will likely receive a lower mortgage rate that reduces the overall cost of the loan, ultimately resulting in savings. Refinancing at a lower rate could allow a homeowner to “cash out” with enough funds for the planned home repairs – without an increase in mortgage payments. The additional funds for the renovation are added to the total mortgage and spread out over a longer period of time.

RENOVATING A NEW HOME PURCHASE

If your planned renovations are for a new home you’re thinking about buying, you can also add that cost to your mortgage. If the price of the home (or condo) is $250,000, you can add the $10,000 (for example) renovation budget and secure the mortgage for $260,000, with the same amortization rate. This results in a lower interest rate, compared to a credit card or loan, and allows you to spread repayment over a longer period of time.

GRANTS & REBATES

In good Canadian fashion, the federal, provincial and municipal governments along with local utilities offer grants and rebates for energy-saving renovations. For example, CMHC Green Home offers a premium refund of up to 25%. You may be eligible if you buy, build or renovate for energy efficiency using CMHC-insured financing. Below is a list of other available financial options to help with your environmentally friendly home improvements.

CMHC Green Home premium refund
Environmental incentives (Alberta)
ENERGY STAR® rebates and incentives
Energy Efficiency Alberta (Home Improvement Rebates)

REMEMBER!

Whenever you decide to embark on a renovation project, remember to set money aside for any unexpected costs that may come up. By having this buffer, you are able to adjust your plans without renegotiating your finances or having to reapply for new funds.

Also, every homeowner’s financial needs are unique, so it’s best to meet a qualified professional to explore your options. For help with finding some financial options for your next renovation project, contact a Dominion Lending Centres mortgage professional near you.

17 Jul

RISING INTEREST RATES AND THE IMPACT ON REAL ESTATE VALUES

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Posted by: MANJIT SINGH BHONDHI

Rising Interest Rates and the Impact on Real Estate Values. Is there an immediate association? In a post entitled Interest Rates and Property Values. What’s the Connection?, I recommended that there was. An illustration was given which proposed that home loan banks would be specifically affected by an ascent in rates, as their endorsing parameters, most outstandingly obligation benefit scope necessities, are straightforwardly affected. A powerlessness for a purchaser to anchor the required financing sum, in a domain of expanding loan costs will, I contend, affect their readiness to offer as high a price tag. Ostensibly a lower obligation level will require a more prominent measure of value. This specifically decreases a financial specialists money on-money return. The unavoidable outcome will be a softening of qualities, since purchasers will need to offer less.

Are there Other Factors?

The above noted method of reasoning, for building up the connection between loan fees and qualities, does anyway overlook different variables which may affect showcase opinion.

An ongoing report by Manulife Asset Management raises some fascinating perceptions. In their March 2018 report entitled Canadian Commercial Real Estate Outlook, Manulife’s investigation watched that in certainty there was no predictable connection between land esteems and financing costs. One of their essential discoveries was that in spite of the fact that loan fees have been ascending since November 2016, to a great extent because of financial development and higher inflationary weight, capitalization rates really declined. Why? Well separated from the assumptions of an individual purchaser and loan specialist, which is the thing that I referenced in my before post, Canadian speculators appreciated enhancing land basics. Yields supposedly was appealing in contrast with different speculations, and there was an ascent in outside venture. All added to a help for business land essentials and steady or improved qualities.

Capitalization Rate Refresher

You may review that capitalization rates are contained an ostensible “hazard free” rate (regularly connected with a Government of Canada benchmark security yield), in addition to a hazard premium credited to a particular property compose or resource. On the off chance that, as it shows up, general capitalization rates have declined, might it be able to be that the “hazard free” rate is falling too? I will urge you to investigate the Manulife report and reach your own particular decisions. From a moneylender’s viewpoint, I don’t question that rising rates have a course on what a purchaser will pay for a property. I presume land appraisers will be similar. The Manulife think about does anyway alert us that there are large scale factors having an effect on everything also, and a solid economy is steady of longer term strength, and to be sure development, in the Canadian Commercial land advertise.

16 Jul

WHAT ARE “RATE HOLDS”?

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Posted by: MANJIT SINGH BHONDHI

Have you at any point known about the term rate hold? In the event that you have ever worked with a home loan representative, odds are, you have!

Rate holds are something that the lion’s share of loan specialists offer to potential customers obtaining another home who require a home loan. Rate holds are for the most part not given out for individuals renegotiating their home loan or hoping to exchange it starting with one bank then onto the next.

120 days is the longest rate hold accessible with moneylenders. When you have made an application with a home loan agent, they can submit it to an accessible moneylender offering rate hangs on a financing cost you need to exploit all without a property appended.

This rate hold does not confer you to working with a bank, does not confer you to working with the home loan intermediary who submitted it, and does not hurt your odds of getting an endorsement not far off (accepting you and your home loan specialist have not presented different rate holds and plan to utilize a third or fourth moneylender).

For instance, the very beginning you present your application to a bank for a settled loan fee of 3.24% for a long time, and on day 60 that financing cost moves to 3.54%, as long as your home loan shut in the following 60 days, you are secured and can keep your 3.24% rate. On the off chance that rates go down, not up, you can likewise exploit the lower financing cost.

Once the 120 days terminates, there is nothing preventing you from presenting another rate hold, it will simply be liable to current financing costs the day of accommodation. On the off chance that you have any inquiries, contact a Dominion Lending Centers Mortgage Professional who can help.