Donnas Mortgages Blog

Zero Down Payment Mortgages Still Available

10/24/2011

If you’ve been trying to save for a down payment to purchase a home but find that it’s just not happening, you may be eligible for 100% financing. There are still a few financial institutions that will include the 5% cash back in your mortgage. And with rates so low today, this is a lot more affordable than a few years back.

You must have verifiable income and strong credit to qualify. Also the legal fees & land transfer costs are also your responsibility. But if you are a first time home buyer, then the government is rebating your land transfer costs.

This is a great program to help you get into your dream home. For a free consultation, contact us today.

Posted in Interest Rates | Tags: 0 down payment, bank of canada interest rates, burlington mortgage broker, cmhc, first time home buyer, interest rates, mortgage, mortgage purchase, no money down, no money down mortgage, purchase financing, real estate, rental property financing, reverse mortgage, RSPs for down payment, toronto mortgage broker, using RSPs to buy a home, zero down payment

FREE Online Home Valuation Tool

10/18/2011

Thanks to increased technology, home owners or would-be home owners, can now get an idea of their home value. Zoocasa offers a free online service call Zoopraisal. You enter the address of the property you’re interested in, plus a few other details such as square footage, and voila! it gives you an approximate value.

This is a great tool to get an idea of what the typical house value is in the neighbourhood you’re interested in. Of course your property may not be the same value since a lot has to do with upgrades. But this tool is a great starting point. Check it out at www.zoocasa.com .

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How to Get Top Dollar for Your Home

09/26/2011

If you’re planning on selling your home soon, or already have it on the market, here are some very important points to consider in order to bring in the highest possible asking price:

1.What is the general “condition” of the house? Most people have a hard time seeing past what’s actually there. If you have some small repairs that need to be done, do them if at all possible before listing the property. If a potential buyer likes your home but has a shopping list of things (no matter how minor) that need to be done, this could certainly decrease the perceived value. Help them to keep the list very small.

2. Does is have curb appeal? This is so important because first impressions can often be very hard to break. If the garden needs tending or the lawn needs cutting, or perhaps the outside of the house needs some work, potential buyers can carry the “negative” first impression with them while viewing the interior of the home, thus “finding fault” with more than what’s really there.

3. Staging is crucial to bring in the best price. Again, people have a hard time seeing past what’s there, so make it easy for them. If your home looks totally finished & put together, it is much easier for the buyer to “fall in love with”. No imagination is necessary.

4. Is it priced right? A lot of sellers think if they ask a much higher price, then the final price will be the one they really wanted all along. Very often this can backfire. If it is priced relative to the other homes in the area & has a lot to offer, this can create a lot of buzz & interest. People feel they are getting great value. If the price is too high relative to the other houses, most buyers won’t even bother to look at it because they feel it lacks value. Then your house sits on the market with no offers, losing valuable time. Your realtor will be able to show you the sale prices of other homes in your area and help you determine your asking price.

Posted in Interest Rates | Tags: bad credit home loans, buying a home, buying a home in ontario, foreclosure, foreclosure definition, gta power of sales, gta power or sale, loan with bad credit, mls, mls ontario, mortgage foreclosure, mortgage real estate, power of sale in ontario, power of sales in ontario, real estate, short sale

Rental Property Financing Woes?

09/08/2011

Are you in investor with several rental properties and are being turned down for financing because your bank says you have “too many”? If this sounds like you then you’ve come to the right place. We deal with lenders who have no maximum on the number of rental properties that a borrower can own.

In addition, the rental revenue and expenses of the rental portfolio aren’t even factored into the debt servicing for the purchase or refinance of the subject property. This is good news because the way many lenders calculate the rental offset often leaves a shortfall, on paper. Therefore it is much more likely to qualify for a mortgage.

If you’d like any more information on how this program may work for you, please contact us today for your free consultation.

Posted in Interest Rates | Tags: bad credit mortgage broker, cmhc, financing multi residential, financing student rentals, hard money lenders, home purchase, interest rates, invesment property purchase, investment properties, investment property financing, mortgage broker, mortgage purchase, mortgage refinance, multi residential properties, multi units, multiple rental properties, private financing for rental properties, refinacing rental properties, rental properties, rental property financing, rental property purchase, student rentals

Bank of Canada Leaves Rate Alone

09/08/2011

The Bank of Canada met this week and left the bench mark interest rate unchanged at 1%.

Mark Carney has suggested the rate will remain unchanged for some time to come as the outlook for the global economy remains somewhat bleak.

Although Canada’s economy appears to be growing again, Carney said exports will be a “major source of weakness”. This is good news for consumers looking for low rates. If your mortgage rate is 4% or higher, you may want to consider switching to a variable rate. The cost to break it could very well be recouped in a few months. Contact us today for a free consultation.

Posted in Interest Rates | Tags: 0 down payment, bad credit mortgage, bad credit mortgage broker, bad credit refinance, bank of canada interest rates, bank of canada rate, cmhc, first time home buyer, fixed mortgage rates, fixed rates, foreclosure, home equity loan, home purchase, interest rates, mortgage rates, no money down mortgage, power of sale, prime rate, reverse mortgage, toronto mortgage broker, zero down payment

Low Interest Rates for Some Time to Come?

07/21/2011

Here is a very encouraging excerpt from a Reuters newsclip regarding the Bank of Canada’s position on interest rates:

OTTAWA (Reuters) – A day after raising expectations it would increase interest rates soon, the Bank of Canada said it might keep rates below their normal long-run levels even after the Canadian economy is back to full capacity, and future rate hikes would likely be gradual.

In a report on Wednesday, and in remarks by Governor Mark Carney, the central bank took pains to say that, as the economy approaches full capacity in mid-2012 and inflation converges on its 2 percent target, markets should not assume interest rates will necessarily rise as quickly to more traditional levels above inflation by then.

“You cannot mechanically assume that because the output gap on our projection — the output gap is closed in the middle of 2012 — that the bank’s target interest rate will be back at neutral, however you define neutral,” Carney said in a news conference.

“And in fact, I said further and I’ll reiterate it today, that if it were, then the output gap wouldn’t close over that horizon and inflation would not be back at target. And why is that? Well, there are considerable headwinds in the Canadian economy.”

The strong Canadian dollar, weak U.S. recovery and the European sovereign debt crisis are the major risks to Canada, he said.

Posted in Interest Rates | Tags: 0 down payment, bad credit mortgage, bad credit refinance, bank of canada, bank of canada interest rates, bank of canada prime rate, bank of canada rate, bank takeover, cmhc, first time home buyer, fixed mortgage rates, foreclosure, home equity loan, interest rates, mortgage broker, mortgage rates, prime rate, toronto mortgage broker, using RSPs to buy a home, variable rate

Prime Rate Remains Unchanged

07/19/2011

The Bank of Canada left the prime rate alone today. This is great news for those consumers with debt. The next meeting date is Sept 7/11.

Fixed rates have dropped recently after a brief increase. Let’s just hope the U.S gets their debt scenario sorted out soon, as this could have a definite impact on us in Canada.

Posted in Interest Rates | Tags: 0 down payment, bad credit mortgage, bad credit mortgage broker, bank of canada rate, bank prime, bank prime rate, cmhc, fixed mortgage rates, fixed rates, home equity loan, home purchase, investment properties, mortgage prime rate, mortgage rates, prime lending rate canada, prime rate, prime rate canada, variable rate, variable rate mortgage, zero down payment

House Hunting Mistakes to Avoid

06/13/2011

Buying a new home is a very exciting & emotional process. But if you let your emotions get the better of you & cloud your judgement, you could be in for trouble. Keep these things in mind when house hunting:

1. Don’t fall in love with a home that you can’t afford. When you’re starting your search, start with the homes in the lowest end of your price range. If you find something here that works well for you, you will potentially save yourself thousands of dollars. You’ll save on the upfront cost of the house and the interest costs over the next several years.

If you start at the high end of your price range, it’ll be very difficult to find something satisfactory if you then start looking at houses in the low end. Everything else will pale in comparison.

2. Rushing to make an offer. Take the necessary time to make sure the property is suitable for you. If there are multiple offers on the home, this could be difficult. But in regular circumstances you want to make sure the house AND the neighbourhood is right for you. What are the surrounding streets like? Are there noisy areas that you didn’t notice before? And what about the neighbours? Are there barking dogs or noisy neighbours? Take some time to do some investigating.

3. Offering too much. Lately certain markets have seen a lot of bidding wars. If you find out that the house you want has or will have multiple offers, don’t go overboard on the price. If you offer too much & the appraisal comes in lower than the purchase price, you will need to increase your down payment in order to compensate for the difference, or have the vendor agree to lower their price. And if the market softens by the time you go to sell the property, you could find that you have little or no equity left.

4. Assuming you’ll never find a house you love. Unless you are a high-end buyer, there’s a good chance that the house you love is available in nearby neighbourhoods. Many builders will build many of the same models, giving you more opportunities to get the same home. And even if there aren’t any more of the same model available, you still may find many other homes offering very similar features. This can be especially true of condos or townhomes.

5. Letting emotion cloud your judgement. It’s very important to remain as subjective as possible when buying a home. If you fall in love with a place but it has some major flaws, don’t underestimate the seriousness of them, or the cost. This could set you up for some big headaches down the road. In addition, be realistic with the extent of your handyman skills. Know your limitations & be prepared to factor in the cost of repairs if necessary.

There are special programs designed to include the reno/repair cost with the purchase price so you don’t have to be out of pocket on things you weren’t necessarily planning on having to pay for. We can provide more info about these.

6. Be decisive. Once you have found a home that you like and are really serious about buying, don’t delay. In today’s market, hesitating could mean losing out to another offer. And remember, time is money. The longer you take to act, the more it could end up costing you down the road.

If you have any questions on getting pre-approved for a mortgage, don’t hesitate, call us today.

Posted in Interest Rates | Tags: home buying, mortgage pre-approval, pre-approved for a mortgage, purchasing a home, selling a home

Reverse Mortgages…Age Limit Lowered to 55

06/08/2011

If you are contemplating a reverse mortgage, you should know that the minimum age limit has been reduced to 55 from 60. This is great news, especially if you’re 60+ but have a spouse that is younger than you. For more details on this please contact us today.

Posted in Interest Rates | Tags: reverse mortgage, reverse mortgages

Is Buying a Student Rental a Good Idea for My Child?

06/06/2011

If you have college/university aged students and are wondering about residence or finding an off campus rental for your child, have you considered buying the rental property yourself and having your student become the landlord? This may be something you want to consider before spending thousands of dollars in rent that you’ll never see again. Consider the math:

Let’s use $500/mo for your child to rent. And even though they may not be living there in the summer months, just about all landlords charge for 12 months. Over 4 years this would add up to $24,000. This money could go towards a mortgage for you instead.

Let’s say you purchased a 1 bedroom condo for $195,000 or a 2 bedroom for $240,000 and you put 20% down. With today’s low mortgage rates, the payment on the 1 bedroom could run about $600/mo with condo fees about $350/mo and property taxes about $180/mo. Total would be approximately $1130.

The mortgage payment would be about $732 for the 2 bedroom. Condo fees about $450/mo and property taxes about $300/mo. Total would be approximately $1482.

Now if you have another student rent the 2nd bedroom, this could offset your costs by about $500/mo. And if you buy a small house instead of the condo, you’ll save on the condo fees each month.

Although your costs might not necessarily break even each month, it could be quite conceivable that when you’re ready to sell the property, your value will have increased.

Many parents go this route and find in the end that it is a much more cost effective option. Be sure to check with your accountant so you’re aware of any tax implications up front.

If you’d like more information on this, please contact us today for your free, no obligation consultation.

Posted in Interest Rates | Tags: rental properties, rental property, rental property financing, rental property purchase, student rental