Thursday, June 4, 2020

CMHC Reviews Underwriting Criteria - July 1, 2020





An Update From CMHC on June 4, 2020:



The COVID-19 pandemic is affecting all sectors of Canada’s economy, including housing. Job losses, business closures and a drop in immigration are adversely impacting Canada’s housing markets, and CMHC foresees a 9% to 18% decrease in house prices over the next 12 months. In order to protect future home buyers and reduce risk, CMHC is changing its underwriting policies for insured mortgages.

Effective July 1, the following changes will apply for new applications for homeowner transactional and portfolio mortgage insurance:



  • Limiting the Gross/Total Debt Servicing (GDS/TDS) ratios to our standard requirements of 35/42;
  • Establish minimum credit score of 680 for at least one borrower; and
  • Non-traditional sources of down payment that increase indebtedness will no longer be treated as equity for insurance purposes.

To further manage the risk to our insurance business, and ultimately taxpayers, during this uncertain time, we have also suspended refinancing for multi-unit mortgage insurance except when the funds are used for repairs or reinvestment in housing. Consultations have begun on the repositioning of our multi-unit mortgage insurance products.

“COVID-19 has exposed long-standing vulnerabilities in our financial markets, and we must act now to protect the economic futures of Canadians,” said Evan Siddall, CMHC’s President and CEO. “These actions will protect home buyers, reduce government and taxpayer risk and support the stability of housing markets while curtailing excessive demand and unsustainable house price growth.”

These decisions are within CMHC’s authorities under the National Housing Act and are in anticipation of potential house price adjustment. We will continue to monitor market conditions and work with our federal colleagues on potential macro-prudential policy options.

CMHC supports the housing market and financial system stability by providing support for Canadians in housing need, and by offering housing research and advice to all levels of Canadian government, consumers and the housing industry.

________________________


As your go to Mortgage Expert I'll keep you posted on how our other two national insurers - Canada Guaranty & Genworth respond to these changes.


**UPDATE**

Both Canada Guaranty & Genworth have given press releases advising they will not be changing their underwriting policies as CMHC has - so business as usual!

Canada Guaranty Mortgage Insurance Company | LinkedInGenworth - Kismet Wealth Group Corp.

Hannah Stojanovski, Mortgage Agent License # M08008004
Capital Lending Centre License # 12830
Office: (289) 608-7185
305 - 230 Westney Rd S, Ajax ON L1S 7J5
hannah@mortgageswithhannah.ca
www.mortgageswithhannah.ca

Thursday, April 16, 2020

Reason #2 To Use Mortgages with Hannah: Save Time With One Stop Shopping



Reason #2 To Use Mortgages with Hannah:
Save Time With One Stop Shopping



Here at Mortgages with Hannah we value you and your time. It could take weeks for you to organize appointments with competing mortgage lenders and we know you’d probably rather spend your time house-hunting, working, with your family, or pretty much anything else!

We work directly with dozens of lenders, and can quickly narrow down a list of those that suit you best.

When we discuss your mortgage application, we’ll also go over your short and long term goals. Every lender has a different product offering, we take this into account when shopping for the mortgage product that is perfect for you.

Lastly, protect your credit! You’ve worked hard to get where you are today, and multiple credit pulls by different lenders could have a negative impact on your credit score. We pull your credit once and send that report to the lenders for review.

It turns comparison-shopping into a fast, easy, and convenient one stop appointment for you!

What are you waiting for? Reach out today and see how easy your next mortgage can be.



​Hannah Stojanovski, Mortgage Agent License # M08008004
Capital Lending Centre License # 12830
Office: (289) 608-7185
305 - 230 Westney Rd S, Ajax ON L1S 7J5
hannah@mortgageswithhannah.ca
www.mortgageswithhannah.ca

Wednesday, April 1, 2020

All About CHIP Reverse Mortgages


CHIP Reverse Mortgage

Wouldn’t it be nice if you had the money to do more of the things you want to do? A CHIP Reverse Mortgage could be just what you need. It’s the simple and sensible way to unlock the value in your home and turn it into cash to help you enjoy life on your terms.

BENEFITS OF A CHIP REVERSE MORTGAGE
You receive the money tax-free. It is not added to your taxable income so it doesn’t affect Old Age Security (OAS) or Guaranteed Income Supplement (GIS) government benefits you may receive.

You can use the money any way you wish. Maybe you want to enjoy your retirement or cover unexpected expenses. Perhaps you want to update your home or help your family without depleting your current savings. The only condition is that any outstanding loans (e.g. existing mortgage or home equity line of credit) secured by your home must be paid out with the proceeds from your CHIP Reverse Mortgage.

No regular mortgage payments are required while you or your spouse live in your home. The full amount only becomes due when you and your spouse no longer live in the home

You maintain ownership and control of your home. You will never be asked to move or sell to repay your CHIP Reverse Mortgage. All that’s required is that you maintain your property and stay up-to-date with property taxes, fire insurance and condominium or maintenance fees while you live there.

You keep all the equity remaining in your home. In many years of experience, 99 out of 100 homeowners have money left over when their CHIP Reverse Mortgage is repaid. And on average, the amount left over is 50% of the value of the home when it is sold.


FREQUENTLY ASKED QUESTIONS
Got questions? Here are frequently asked questions.

How does a CHIP Reverse Mortgage work?
A CHIP Reverse Mortgage is secured by the equity in your home. Unlike a traditional mortgage in which you make regular payments to someone else, a reverse mortgage pays you.
The big advantage with the CHIP Reverse Mortgage is that you do not have to make any regular mortgage payments for as long as you or your spouse lives in your home. That’s what has made reverse mortgages such a popular solution in Canada, the U.K., the U.S., Australia and other countries.

Who is it for?
The CHIP Reverse Mortgage is designed exclusively for homeowners age 55 and older. This age qualification applies to both you and your spouse.
How much can I get and how is it calculated?
You can receive up to 55% of the value of your home. The specific amount is based on your age and that of your spouse, the location and type of home you have, and your home’s current appraised value. You can contact me and I can quickly give you an estimate of how much you may be approved for.

How do I receive the money?
You can choose how you want to receive the money. The CHIP Reverse Mortgage gives you the option of receiving all the money you’re eligible for in one lump sum advance, or you can take some now and more later, or you can receive planned advances over a set period of time. Planned advances are available on the Income Advantage product.

Will the homeowner owe more than the house is worth?
The homeowner keeps all the equity remaining in the home. In our many years of experience, over 99% of homeowners have money left over when their loan is repaid. The equity remaining depends on the amount borrowed, the value of the home, and the amount of time that’s passed since the reverse mortgage was taken out.

Will the bank own the home?
No. The homeowner retains title and maintains ownership of the home. It’s required for the homeowner to live in the home, pay taxes on time, have property insurance, and maintain the property in good condition.

What if the homeowner has an existing mortgage?
Many of our clients use a reverse mortgage to pay off their existing mortgage and debts.

Should reverse mortgages only be considered as a loan of last resort?
No. Many financial professionals recommend a reverse mortgage to supplement monthly income instead of selling and downsizing, or taking out a conventional mortgage or a line of credit.

What fees are associated with a reverse mortgage?
There are one time fees to arrange a reverse mortgage such as an appraisal fee, fee for independent legal advice as well as our fee for administration, title insurance, and registration. With the exception of the appraisal fee, these fees are paid for with the funding dollars.

What if the homeowner can’t afford payments?
There are no monthly payments required as long as the homeowner is living in the home.

Contact me today if you have any questions or if you’d like to see how much you can get!

Hannah Stojanovski, Mortgage Agent License # M08008004
Capital Lending Centre License # 12830
Office: (289) 608-7185
305 - 230 Westney Rd S, Ajax ON L1S 7J5
hannah@mortgageswithhannah.ca

Friday, March 27, 2020



Reason #1 To Use Mortgages with Hannah:
Get Independent Advice On Your Financial Options


As an independent mortgage agent, I am not tied to any one lender or range of products. My goal is to help you successfully finance your home or investment property.

What Does The Process Look Like?

I’ll start by getting to know you and your home ownership goals. Then I will speak with my 20+ lenders to find you some options, and come back to you with a recommendation that matches your needs.

What Do I Do?

You complete the mortgage application once, you submit your supporting documents once, you tell your story once, you share your goals once, and I pull your credit once. Then you go back to work while I shop!

The Bottom Line?

Gone are the days when you go lender to lender to lender and shop around, repeating your story and having your credit pulled multiple times. My job is to give you access to the best mortgage products, while making the process easy for you.

Gone are the days when the financial advisor sells you on the only product they have access to. With 20+ lenders and over 100 products, and terms you truly are getting the best mortgage for your short and long term goals.


What are you waiting for? Reach out today and see how easy your next mortgage can be.

​Hannah Stojanovski, Mortgage Agent License # M08008004
Capital Lending Centre License # 12830
Office: (289) 608-7185
305 - 230 Westney Rd S, Ajax ON L1S 7J5
hannah@mortgageswithhannah.ca
www.mortgageswithhannah.ca

Wednesday, March 18, 2020

What Does A Buyer Agent Do, And Why Do You Need One?


This month we have some very valuable information to share with you from our guest blogger, read on to learn more!

Buying a home is one of the biggest financial investments you will make in your lifetime. Why go it alone? Hiring your own Buyer Agent simplifies the whole process. Your agent will help you focus on finding exactly what you are looking for, narrowing down the area, style and type of home, along with identifying the “must-have”, the “nice-to-have” and the “definitely not this” features for your future home.


There are also some compelling legal and financial reasons why it makes sense to work with a Buyer Agent. Your Buyer Agent is legally bound to represent you, while a Listing Agent has a fiduciary duty to represent their home seller. Think about it this way...if you were being sued, would you hire the same attorney as the person who is suing you? Of course you wouldn't. You need someone who will diligently fight for your best interests.

What if you went to an open house and decided to share with the Listing Agent that you love the home and want to buy it? Perhaps you also share that you only have two months left on your lease and need to move soon. That agent is obligated to share this information with the Seller, which will give you a lot less negotiating power on price. Tell your Buyer Agent this…and it stays confidential. Your Buyer Agent will be better able to negotiate on your behalf, saving you time, money and disappointment.

While you may be hoping to pay the lowest price possible, the Listing Agent and their Seller have a goal to sell for the highest price possible. So, how will you know if you’re paying fair market value? Or better yet, buying below market value? By working with a Buyer Agent who is there to represent you. And the best part? Our services are at no cost to you! Our brokerage fees are paid by the Seller.

As your Buyer Agent, we will guide you through the home-buying transaction and be ready to assist with any questions or concerns. We will find a home that meets your needs and wants, provide you with advice and information that allows you to make well informed decisions, and negotiate on your behalf to secure the best possible price and terms.

Our reputation depends on your satisfaction, and our greatest reward is your trust, repeat business and referrals. We promise to conduct business with the highest standards of integrity, honest and fairness and look forward to working with you to help make your home buying experience as stress-free and enjoyable as possible. Contact me to book a free, no-obligation consultation. I look forward to meeting you!


Sandy Gardner
BROKER | Senior Real Estate Specialist (SRES)
Royal LePage Connect Realty, Brokerage
Direct:  905.718.5936


Monday, March 16, 2020

Virtual Appointments Available!


Amid all of us doing our best to practice social distancing, we at Mortgages with Hannah have closed our office and our team is working from home, and we have temporarily cancelled all in person appointments. We care about the health and safety of our team, our clients, and our referral partners. That being said - we can do everything we need to do to secure you the best rate possible, virtually! Over a few short steps online, on the phone, and on DocuSign we could have your new mortgage closed in a matter of 3-4 weeks. Do you have some high interest debt that you've been meaning to review, or is your mortgage rate above 3%? Reach out today, we would be happy to give you a no strings attached opinion. 📧 hannah@mortgageswithhannah.ca ☎️ (289) 608-7185 💻 http://www.mortgageswithhannah.ca