1 May

Would a Co-Signer Enable You to Qualify for a Mortgage?

Mortgage

Posted by: Kelly Hudson

There seems to be some confusion about what it actually means to co-sign on a mortgage… and any time there is there is confusion about mortgages, it’s time to chat with Kelly Hudson, your trusted mortgage expert!!

Let’s take a look at why you would want to have someone co-sign your mortgage and what you need to know before, during and after the co-signing process.

Qualifying for a mortgage is getting tougher, especially with the 2017 government regulations. If you have poor credit or don’t earn enough money to meet the banks requirements to get a mortgage, then getting someone to co-sign your mortgage may be your only option.

The new ‘stress test’ rate is especially “stressful” for borrowers.  As of Jan. 1, 2018 all home buyers need to qualify at the rate negotiated for their mortgage contract PLUS 2% OR the government posted rate 5.34% (this rate varies) which ever is higher.  If you have less than 20% down payment, you must purchase Mortgage Default Insurance and qualify at 5.34%.

The stress test has decreased affordability, and most borrowers now qualify for 20% less home.

In the wise words of Mom’s & Dad’s of Canada… “if you can’t afford to buy a home now, then WAIT until you can!!” BUT… in some housing markets (Toronto & Vancouver), waiting it out could mean missing out, depending on how quickly property values are appreciating in the area.

If you don’t want to wait to buy a home, but don’t meet the guidelines set out by lenders and/or mortgage default insurers, then you’re going to have to start looking for alternatives to conventional mortgages, and co-signing could be the solution you are looking for.

In order to give borrowers, the best mortgage rates, Lenders want the best borrowers!! They want someone who will pay their mortgage on time as promised with no hassles.

If you can’t qualify for a mortgage with your current provable income (supported by 2 years of tax returns and a letter of employment) along with solid credit, your lender’s going to ask for a co-signer.

Ways to co-sign a mortgage

  1. The first is for someone to co-sign your mortgage and become a co-borrower, the same as a spouse or anyone else who you are actually buying the home with. It’s basically adding the support of another person’s credit history and income to those initially on the application. The co-signer will be put on the title of the home and lenders will consider them equally responsible for the debt should the mortgage go into default.
  2. Another way that co-signing can happen is by way of a guarantor. If a co-signer decides to become a guarantor, then they’re backing the loan and essentially vouching for the person getting the loan that they’re going to be good for it. The guarantor is going to be responsible for the loan should the borrower go into default.

Most lenders prefer a co-signer going on title, it’s easier for them to take action if there are problems.

More than one person can co-sign a mortgage and anyone can do so, although it’s typically it’s the parent(s) or a close relative of a borrower who steps up and is willing to put their neck, income and credit bureau on the line.

Ultimately, as long as the lender is satisfied that all parties meet the qualification requirements and can lessen the risk of their investment, they’re likely to approve it.

Before signing on the dotted line

Anyone that is willing to co-sign a mortgage must be fully vetted, just like the primary applicant. They will have to provide all the same documentation as the primary applicant. Being a co-signer makes you legally responsible for the mortgage, exactly the same as the primary applicant. Co-signers need to know that being on someone else’s mortgage will impact their borrowing capacity while they are on title for that mortgage. They’re allowing their name and all their information to be used in the process of a mortgage, which is going to affect their ability to borrow anything in the future.

If someone is a guarantor, then things can become even trickier the guarantor isn’t on title to the home. That means that even though they’re on the mortgage, they have no legal right to the home itself. If anything happens to the original borrower, where they die, or something happens, they’re not really on the title of that property but they’ve signed up for the loan. So they don’t have a lot of control which can be a scary thing.

In my opinion, it’s much better for a co-signer to be a co-borrower on the property, where you can actually be on title to the property and enjoy all of the legal rights afforded to you.

The Responsibilities of Being a Co-signer

Co-signing can really help someone out, but it’s also a big responsibility. When you co-sign for someone, you’re putting your name and credit on the line as security for the loan/mortgage.

If the person you co-sign for misses a payment, the lender or other creditor can come to you to get the money. The late payment would also show up on your credit report.

Because co-signing a loan has the potential to affect both your credit and finances, it’s extremely important to make sure you’re comfortable with the person you’re co-signing for. You both need to know what you’re getting into. I recommend looking into Independent Legal Advice between all co-borrowers.

Co-signing is NOT a life sentence

Just because you need a co-signer to get a mortgage doesn’t mean that you will always need a co-signer.

In fact, as soon as you feel that you’re strong enough to qualify without your co-signer – you can ask your lender to reconsider your application and remove the co-signer from the title. It is a legal process so there will be a small cost associated with the process, but doing so will remove the co-signer from your loan (once you are able to qualify on your own), and release them from the responsibility of the mortgage.

Removing a co-signer technically counts as changing the mortgage, so you need to check with your mortgage broker and lender to ensure that the lender you choose doesn’t count removing a co-signer as breaking your mortgage, because there could be large penalties associated with doing so. For more information, check out Mortgage Penalties – Ouch… How Much??

Co-signing is an option that could help a lot of people buy a home, especially first time home buyers who are typically starting their career and building their credit bureau.

A final mortgage tip: a couple of alternatives to co-signing that could help someone out:

  • providing gift funds for a down payment
  • paying off someone else’s debt, giving them more funds to pay the mortgage

Are you looking at buying a home? As you can tell there is lots to discuss, give me a call and let’s have a chat!

Kelly Hudson
Mortgage Expert
Dominion Lending Centres – Canadian Mortgage Experts
Mobile: 604-312-5009 
Kelly@KellyHudsonMortgages.com
www.KellyHudsonMortgages.com

4 Oct

Mortgage Insurance 101

Mortgage

Posted by: Kelly Hudson

Mortgage insurance… sounds simple doesn’t it??

For a first-time home buyer, the types of insurance surrounding a mortgage can be confusing, so it’s important to know what insurance covers what.

There are 3 main types of insurance to know about when buying a home.

Mortgage Default Insurance – If you put less than 20% down on a home you are buying, Government rules are you must pay for Mortgage Default Insurance which covers the lender should you default on your mortgage payments.

There are three mortgage default insurers in Canada – Canadian Mortgage & Housing Corp. (CMHC), Genworth or Canada Guaranty) The purchase of this insurance solely benefits the bank/lender.

For more information check out Everything You Wanted to Know about Mortgage Default Insurance

Mortgage Insurance and/or Life Insurance

You’ve just made the biggest purchase of your life: a new home for you and your family.

  • What’s the best way to protect your investment if you die?

Insurance is the answer. But what kind: mortgage insurance or life insurance? 

There are important differences between the two that we’ll examine.

Mortgage Insurance Life Insurance
Tends to be quicker to process. Can take 30-90 days to put into place.
Can be easier to qualify for. With individual owned insurance the medical underwriting is completed up front, so you know what is covered when your policy is approved.
Decreasing benefit – the amount of coverage with mortgage insurance decreases as you pay down the balance each month, while the monthly insurance payments remain the same. If you get coverage for $500K, it stays at $500K until you decide to change it, or your term expires.

Beneficiary is the lender/bank who holds your mortgage. You can designate the beneficiary/beneficiaries.
Mortgage insurance is attached to the outstanding balance on your mortgage. Life insurance is attached to you rather that your debt.
Typically, your mortgage insurance policy pays off the current balance on your mortgage to your lender/bank. The beneficiary(ies) decide what to do with the insurance.  Funds can be used to pay off the mortgage or any other bills (funeral, hospital/home care expenses, living expenses, education etc.).  It’s your money, and you can decide how to use it.
You can cancel anytime i.e. you find an insurance product that suits you better. You can cancel anytime i.e. you find an insurance product that suits you better.
Portability – mortgage broker sold Mortgage Insurance policies are portable. Which means that if you switch lenders or buy a new property, you will be able to transfer your Mortgage Life Insurance to a new property. Make sure you ask your Insurance Provider if the insurance they are recommending is portable.·         Take note that when the bank offers you Mortgage Insurance you will not likely be able to transfer your Mortgage Life Insurance to a new lender or property thereby limiting your future financing options. Completely portable.  Doesn’t matter if you buy a different home or switch lenders/banks, life insurance follows you not your property.

Please note:  Mortgage/Life Insurance is not mandatory to qualify for a mortgage.

You have made the biggest purchase of your life… how do you protect yourself and your family?  Many people say they have life insurance through their work, but is it enough?

  • The question you should be asking is – do you currently have enough life insurance in place right now, equal to your mortgage amount?

Top Benefits of purchasing Mortgage/Life Insurance

  1. Peace of Mind – creates a sense of security that your loved ones will be taken care of if you pass on.
  2. Mortgage Can be Paid Off – whereby any other policies that are held will be able to assist with other needs.
  3. Family can Stay in their Home – if there is the unfortunate life event that is the death of the Mortgage/Life Insurance policy holder, the mortgage can be paid off which will allow the family to stay in their home and not become displaced, causing additional anguish.
  4. The Younger you are, the Less Expensive – Which means that insurance is extremely affordable for a young, and likely, first time home buyer.
  5. Good Health = Coverage for Unexpected Illness Later on – After illness strikes, it is more difficult to acquire life insurance.

Mortgage/Life Insurance is an option that anyone with a mortgage should consider. Ask me about a referral for reputable and credible insurance.

While we’re discussing insurance, there are other types of insurance you need to consider as well…

  • Fire insurance – most lenders will want to see that you have fire insurance in place, prior to funding your mortgage to “protect” their investment.

Additional insurance options:

  • Disability insurance
  • Personal content insurance

Mortgages are complicated… BUT they don’t have to be!  You need to protect your investment by engaging an expert.

Give me a call and let’s discuss a mortgage that works for you (not the bank)!

Kelly Hudson
Mortgage Broker
DLC – Canadian Mortgage Experts
Mobile: 604-312-5009
Kelly@KellyHudsonMortgages.com
www.KellyHudsonMortgages.com

26 Jun

Don’t Forget the Closing Costs When You Purchase a Home

Mortgage Tips

Posted by: Kelly Hudson

The purchase price you negotiate when buying or selling a home is just one part of the total cost for buying a home. In addition to the purchase price there are several other fees – known as closing costs – all of which you need to factor in to your purchase price.

Closing costs tend to be hidden costs when buying a home. It’s not a set number, but a compilation of various administrative, legal fees and other one-time expenses associated with the purchase of a home that are due on the completion date.

These costs can add up, so you’ll need to factor these costs into your cash-on-hand budget.

Many first-time home buyers under estimate the amount of cash they will need for closing costs. Typically, you’ll want to budget between 1.5% and 4% of the purchase price of a resale home to cover closing costs.

Of course, these are estimates — the actual amount you will need could be higher or lower, depending on factors like where you live, the type of home you’re buying, or if it’s a new construction (+5% GST).

To help you plan the purchase of your property, here’s a snapshot of the extra fees you can expect to pay once you’ve settled on the price of your home.

  • Legal Fees
  • Title Insurance
  • Fire Insurance
  • Adjustments
  • Property Transfer Tax (PTT)
  • GST
  • and more…

Here’s an overview of what you can expect.

Legal Fees:

Legal/Notarial Fees and Disbursements. The lawyer/notary is the person who goes through all the paperwork and makes sure that everything is legitimate and binding. They confirm that all the items that were agreed to by the buyer, seller/builder, and lender are written and worded correctly. Your legal representative should also be able to walk you through each document that you sign so that you understand what you’re agreeing to. Legal fees range from $500 to $2,500. You will also need to reimburse them for their out-of-pocket costs that they incurred while handling the various searches and registrations, including title insurance (see below), property and execution searches, and the registration of the mortgage and deed. These disbursements are repaid to the lawyer on the closing date, as well as incidentals such as couriers, certified cheques, and photocopying, the land transfer tax, the down payment, and any interest adjustments.

Title Insurance:

Title refers to the legal ownership of the property. The deed is the physical legal document that transfers the title from one person(s) to another. Both the title and deed of the home must be registered with a land registrar.

Most lenders require title insurance as a condition of granting you a mortgage. Your lawyer or notary helps you purchase this.

Title insurance protects you from title fraud, identity theft and forgery, municipal work orders, zoning violations and other property defects. It can also protect you against fees and costs that were not caught in the searches your lawyer conducted prior to the sale (Yes this can happen!).

Title insurance premiums range from $150-$500 depending on the value of the property.

Fire/Home Insurance:

Mortgage lenders require that you have fire/home insurance in place by the time you complete the purchase of your home.

Property insurance protects you in case of fire, windstorms or other disasters. It covers your home’s replacement value. The amount required is at least the amount of the mortgage or the replacement cost of the home. This cost can vary on the property size and extras being insured, as well as the insurance company and the municipality. Home insurance can vary anywhere from $400 per year for condos to $2,000 for large homes.

Adjustments:

An adjustment is a cost to you to pay the seller for the seller prepaying for something related to the house including property taxes, condo fees, heat etc. on your behalf.

Simply put, if you take possession in the middle of a month, the seller has already paid for the whole month and you must pay the seller back for what they’re not using. These adjustments are prorated based on the date you complete your purchase of the home. The most common adjustments are for property taxes, utility bills & condo fees that have been prepaid.

Property transfer tax (PTT) in British Columbia:

Is a tax charged to you by the province. First-time home buyers are exempt from this fee if they are purchasing a property under $500,000. All home buyers are exempt if they are purchasing a new property under $750,000.

GST:

Is a federal value added tax 5% on the purchase price of a new home. If someone has lived in the home, the home isn’t subject to GST.

  • There is a partial GST rebate on new properties under $450,000.

Interest Adjustment Costs:

Most lenders expect the first mortgage payment one month after completing the purchase of a home. If you close mid-month, please note some lenders expect the first payment, or at least the interest accrued during that time, on the 1st day of the next month. When arranging your mortgage, ask how interest is collected to the interest adjustment date.

Other closing costs:

Will your new home need furniture? Carpets? Lighting? Window coverings? Appliances? Do you have the equipment you need to maintain the lawn and gardens? Are you hiring movers or renting a truck? Will you need boxes, bubble wrap and tape for the move?

While these and other out-of-pocket costs aren’t part of the real estate transaction, you still need to budget for them. Plan your expenses as much as possible. If necessary, decide what you can put off buying until later, after you move in and get settled.

Congratulations!! You’re all caught up on your closing day costs. Now its time to get your keys and enjoy your new home.

Mortgages are confusing… Give me a call and let’s discuss a mortgage that works for you (not the bank)!

Kelly Hudson
Mortgage Expert
DLC – Canadian Mortgage Experts
Mobile: 604-312-5009
Kelly@KellyHudsonMortgages.com 
www.KellyHudsonMortgages.com

13 Oct

Self-Employed?? Here’s What You Need to Know About Mortgages

Mortgage Tips

Posted by: Kelly Hudson

Why, why, why it is so challenging for entrepreneurs to obtain a mortgage in Canada?

If you’re among the 2.7 million Canadians who are self-employed, regrettably your income is not as easy to document as someone who’s traditionally employed.

Since 2008, mortgage regulations in Canada have made it more challenging for those who work for themselves to qualify for a mortgage due to tighter restrictions on “stated income” loans.  In 2012, Canada’s Office of the Superintendent of Financial Institutions (OSFI) introduced Guideline B-20, which requires federally regulated banks to evaluate applications for residential mortgages and home equity lines of credit with more scrutiny.

These rulings made it more challenging for the self-employed to prove income.

Here’s what Self-Employed home buyers need to know:

  1. Most self-employed are motivated to decrease their earnings to avoid paying tax through legitimate expenses and personal deductions.
    • Therefore, much of one’s self-employed income does not show up on paper.
  2. I’m sorry… but you can’t you can’t have your cake and eat it too! If you choose to write off as much of your income as legally possible to avoid paying taxes, claiming low take-home pay, you will end up paying a higher interest rate on your mortgage.
    • i.e. home buyer is a tradesperson, they earn $70,000/year and legitimately write off their business expenses to $40,000/year on Line 150 of their tax return. Lenders use income from Line 150… not gross income to determine affordability.
    • Some lenders allow you to “gross up” your declared taxable income (as opposed to stated income) by adding up to 15%.
      • i.e. if your declared income on your Notice of Assessment (NOA) is $40,000, the lender could add 15% for a total of $46,000. In most cases this doesn’t really help the business owner, as their income is still too low to qualify for the mortgage they want.
  3. The new mortgage rules mean the assessment of a self-employed applicant’s income has become far more rigorous. Lenders now analyze the average income for the industry a self-employed candidate works in, and study the person’s employment history and earnings in the field. Their stated income should be reasonable, based on:
    • industry sector
    • type of business
    • length of time the operation has been in business
  4. Work with professionals. You need to hire a qualified book keeper and a Chartered Professional Accountant (CPA). Their job is to know the ins and outs of taxes so that you can put your focus on growing your business.
    • You need to keep all your financial affairs up to date. That means getting the accountant prepared financials, filing your annual tax returns and most importantly paying your taxes. Government always gets first dibs on any money.  Lenders won’t be interested in you if you haven’t paid your taxes.
    • I recommend having a discussion with your CPA. Let them know that you want to buy a home.  Come up with a budget of what income you need to be able to prove on your tax returns.
      • Suggestion: you could choose to pay more personal income tax this year, to push your line 150 income up and help you qualify for any mortgage transactions you hope to make.
      • Please note: most lenders will want to see 2 years history, to prove consistency in earnings.
  5. For self-employed borrowers, being able to document income for the past 2-3 years gives you more lending options. Some of the documents your lender may request include:
    • Credit bureau (within 30 days of purchase)
    • Personal tax Notice of Assessment (NOA) for the previous two to three years.
    • Proof that you have paid HST and/or GST in full.
    • Financial statements for your business prepared by a Chartered Professional Accountant (CPA).
    • Contracts showing your expected revenue for the coming years (if applicable).
    • Copies of your Article of Incorporation (if applicable).
    • Proof that you are a principal owner in the business.
    • Business or GST license or Article of Incorporation

6. If you have less than 20% down payment, Genworth is the only option of the 3 mortgage default insurers that still has a stated income program.

Self-employed home buyers, who can document proof of income, can generally access the same mortgage products and rates as traditional borrowers. 

Tips for self-employed applying for a mortgage to ensure the process goes smoothly:

  1. Get your finances in order. Pay down your debt!!
    • Every $400/month in loan payments lowers your mortgage eligibility by $100,000
    • Every $12,000 in credit card debt lowers your mortgage eligibility by $100,000
    • Do you see a theme here??  Pay down your debt!  Resist buying/leasing a new vehicle or taking on any additional debt prior to buying your home
  1. 3 “Rules of Lending” what Banks look at when you apply for a Mortgage in Canada 
  1. Have two to three years’ worth of your self-employed supporting documentation available so your mortgage broker can work with you to set up your Mortgage Preapproval.
  1. Be consistent and show stability. Lenders prefer self-employed borrowers who work in a business that’s established and have expertise in that field.

What happens if the banks still don’t want you for a conventional mortgage??  

Many high net worth business owners with low stated incomes turn to private mortgage lenders for financing, since they can’t prove their income.

It is difficult to navigate which lenders specialize in self-employed mortgages.  Using a mortgage broker has obvious advantages, since mortgage brokers have access to multiple lenders and have a broad knowledge of the mortgage market.

Being self-employed need not be a deterrent to buying a property.  Let’s have a chat so I can connect you to the lender most suited to your situation.

Kelly Hudson
Mortgage Expert
DLC – Canadian Mortgage Experts
Mobile: 604-312-5009
Kelly@KellyHudsonMortgages.com
www.KellyHudsonMortgages.com

30 Jun

Fixed vs. Variable rate mortgages – Pros & Cons

Mortgage

Posted by: Kelly Hudson

As an independent Mortgage Broker, I am often asked “should I choose a fixed or variable rate mortgage”

Buying a home is very exciting, but it can easily be overwhelming.

Understanding how mortgages work is your first step. Education is a huge part of my job, I give people as much information (as you can handle), so you make the best decision regarding a mortgage for your particular circumstance.

When deciding on a mortgage you will need to choose between a variable or fixed rate mortgage. Your income, size of your mortgage, lifestyle and risk tolerance will help you determine which product best suits your particular circumstance.

The key to variable and fixed rates is to understand how interest rates are calculated and how these impact each type of mortgage:

  • Fixed rate mortgages (FRM)provides stability and eases budget anxiety, because it is constant over the deration of the term of the mortgage (i.e. 5 years).
    • Fixed rate mortgages are based on the Canadian bond market (the 5 year fixed rates is based on the yield of a 5-year bond). As bond prices rise, fixed rates will also rise and the spread between the two reflects the risk investors are willing to take when they move their money from a secure product, like bonds, to invest in mortgage securities.
    • There are times when that spread becomes very wide or very thin—usually a reflection of world events, such as the subprime mortgage crisis of 2008.
  • The Fixed Rate Mortgage is recommended for the following reasons:
    • Clients are risk averse.
    • They have bought a property at the high end of their affordability range.
    • Clients are not knowledgeable about borrowing and are more advised to take something secure.
  • Variable rate mortgages (VRM), (also called a floating or adjustable) is a mortgage where the interest rates can fluctuate during your term.
    • That means if the prime rate goes up — based on changes made to the Bank of Canada’s overnight rate — then variable rates will go up. That means your interest rate and mortgage payments could change from month to month

Fixed & variable mortgage rates Pros & Cons

Fixed mortgage rate (closed)  Variable mortgage rate (closed)
Description Set for the duration of the mortgage term (i.e. 5 years). Mortgage interest rate and payments are fixed.  Fluctuates with the Bank of Canada rate, known as  the ‘prime rate’. Mortgage payments can fluctuate.
Pros ·Can essentially set the payments and forget about it until your term is over, regardless of whether Canadian bonds or interest rates rise or fall.

 

·Eases budgeting anxiety and offers stability.

·If the difference between the variable & fixed rate is less than 1%, it may be worth paying a premium for the stability protection of a fixed rate.

 ·Historically, over the last 25 years variable rates have proven to be less expensive over time.

 

·Since the current Bank of Canada rate is 0.75%  and prime is 2.85% there isn’t a lot of room for  interest rates go much lower.

·80% of people break their mortgage* before the  term is complete.

o   Variable rate mortgages typically charge 3  months interest penalty which typically is lower  than the Fixed Rate Mortgages *varies depending  on lender

Cons ·If the difference between the variable & fixed rate is significant, it may not be worth paying a premium for the stability protection of a fixed rate.

 

·80% of people break their mortgage* before the term is complete.

o   Fixed rate mortgages typically charge the greater of: 3 months interest OR Interest Rate Differential *varies depending on lender

 When interest rates change, depending on the  lender and the terms of your mortgage, the  following scenarios are possible:

 

·Your payment goes up or down each time Prime  rates change.

·Your payment stays the same when Prime rates go  down, but increases when market interest rates go  up. In this scenario, more of your payment goes  toward paying down the principal when the interest  rate falls.

·Your payment does not change unless Prime rates  increase to a “trigger” point (shown in your  mortgage agreement). Only at that point will the  lender increase your payment.

·If you choose variable rate OR a term less than 5  years, the Canadian government dictates that you  must qualify for your mortgage at the Bank of  Canada Benchmark Rate currently 4.64%. This is to  ensure you can still afford your mortgage if interest  rates increase. Click Here To See The Bank of  Canada Benchmark Rate Qualification Index  

*Drawing Conclusions: How much does it cost to break a mortgage?

 puzzle-pieces-2 Sept2014What is the best option?

According to Robert Abboud, an Ottawa – based CFP and the author of No Regrets: A common sense guide to achieving and affording your life goals, Ram Balakrishnan, blogger, and Dr. Moshe Milevsky, the York university professor whose initial 2001 study became the impetus behind the current belief that you’ll always save with a variable rate mortgage, a variable rate mortgage may not be in your best interest.

According to Milevsky’s 2001 study (and the updated study released in 2008), homeowners who opt for a variable rate mortgage save approximately $22,000 in interest payments over a 15 – year period.

  • But context is everything. The study, and its update, examined mortgages between 1950 and 2007. Since the study was published, the spread (otherwise known as the difference between variable and fixed rates) has thinned out.
  • Also interest rates, which were consistently falling over the last 25 years, have slowed considerably.
  • Add to this the historical response by governments in tough economic times: stimulate spending, which generates inflation. To combat this inflation, governments raise interest rates — sometimes suddenly and ruthlessly — and this has an immediate impact on variable rates (the overall economic condition will eventually impacts fixed rates).

For that reason, Milevsky, and others, have voiced their support for locking – in to a fixed rate. The rationale: any savings you see from currently low variable rates will be eaten up when you’re forced to renegotiate your mortgage in five years. That’s because as rates slowly creep up over the next five years, your monthly payments remain the same — and this results in a larger percentage of your payment going to interest payments, rather than repaying the principal.

To help you decide whether a variable or fixed mortgage is the best option for you, answer the following 4 questions:

  1. Does the thought of uncertain mortgage interest rates and fluctuating payment amounts keep you up night?
  2. Do you have a big mortgage? Do you expect to have a big mortgage in five years?
  3. Would it be virtually impossible to make additional monthly or lump – sum payments against the mortgage?
  4. Would it be a burden to find an extra $100 or $200 per month for mortgage payments?

If you answered YES to any of these questions, you need to seriously consider a fixed – rate mortgage. Despite the temptation of saving money with a variable rate mortgage, a fixed rate will provide a level of stability and predictability that your situation requires.

Mortgage borrowers need to understand and measure risks when deciding between a fixed-rate mortgage (stability) and a variable rate mortgage (balance between risk & reward).

Besides the Fixed vs Variable rate mortgages, there are many other factors you need to be aware of prior to buying your home.

Let’s have a chat to discuss your next steps to home ownership.

Kelly Hudson
Mortgage Expert
DLC – Canadian Mortgage Experts
Mobile 604-312-5009
Kelly@KellyHudsonMortgages.com 
www.KellyHudsonMortgages.com