Lucas Mathieu - Mortgage Tech

The actual (not-seasonally adjusted) national average home price was $663,500 in August, an increase of 13.3 percent from 2020 to 2021. When excluding Canada’s priciest influential cities, Vancouver and Toronto, the national average drops over $130,000 in August to around $533,500.

The Aggregate Composite MLS Home Price Index (MLS HPI) rose 0.9 percent on a monthly basis in August, marking it the first month-to-month acceleration in price growth since February.

Looking across the country, year-over-year price growth is averaging around 20 percent in British Columbia, over 20 percent in Ontario, and slightly over 10 percent in Manitoba. New Brunswick reported annual price growth little above 30 percent in August.

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John Maxwell in “Sometimes You Win, Sometimes You Learn” presents the case that our learning comes from our failures, and to be successful, we need to be able to learn from our mistakes.

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Downsizing Your Home!

Moving to a larger house is not the only time that things can change with your home and mortgage. Sometimes there comes the point when owning a home becomes a little too much to handle, or maybe you’re an empty-nester and no longer need three extra bedrooms. Whatever the reason, downsizing is a great option when you no longer need a full-size home.

For homeowners who are fortunate enough to now be mortgage-free and looking to scale down, you could be sitting on a gold mine!

If you do still owe on your current mortgage, it is important to remember that downsizing during your current mortgage cycle will be breaking the mortgage.

Regardless of your current situation, there are some costs that go with selling your existing home and moving to something smaller or more affordable.

Some of the costs associated with downsizing are:

• Realtor commission fees, which range from 2.5 to 5 percent of the home selling price

• Closing costs and legal fees, which are 1 to 4% of the purchase price on the new home

• Miscellaneous costs such as moving expenses, upgrading appliances, and/or buying new furniture

• If you are moving into a condominium or townhouse, there are strata fees to consider

🌍 Visit website: https://www.mortgagetech.ca/
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For a mortgage, the contractual payment is the required monthly payment amount for your home loan as described and determined by your loan contract. The contractual payment may include principal and interest due and may include a portion of funds due to cover homeowners insurance, mortgage insurance (if applicable), and property taxes associated with your home.

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📧 𝐄𝐦𝐚𝐢𝐥: [email protected]

Which one is the myth?

Tell us in the comment section!

🌍 Visit website: https://www.mortgagetech.ca/
📞 𝐆𝐢𝐯𝐞 𝐮𝐬 𝐚 𝐜𝐚𝐥𝐥: 250-574-7399
📧 𝐄𝐦𝐚𝐢𝐥: [email protected]

10 Mortgage Mistakes!

Whether it is your first house or you’re moving to a new neighborhood, getting approved for a mortgage is exciting! However, even if you have been approved and are simply waiting to close, there are still some things to keep in mind to ensure your efforts are successful.

Many homeowners believe that if you have been approved for a mortgage, you are good to go. However, your lender or mortgage insurance provider will often run a final credit report before completion to ensure that nothing has changed. Changes in your credit usage and score could affect what you qualify for – or whether or not you get your mortgage at all.

To avoid having your mortgage approval status reversed or jeopardizing your financing, be sure to stay away from these 10 mortgage mistakes:

1. Beefing up your application
2. Getting pre-approved
3. Shopping around
4. Not saving for a down payment
5. Changing employers or jobs
6. Applying or co-signing for other loans
7. Avoiding credit missteps
8. Having too much debt
9. Large deposits
10. Marrying into poor credit

🌍 Visit website: https://www.mortgagetech.ca/
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Most people confuse "𝗮𝗺𝗼𝗿𝘁𝗶𝘇𝗮𝘁𝗶𝗼𝗻" with the mortgage "𝘁𝗲𝗿𝗺". Actually, a survey in the U.S dicovered that over 40% of homeowners 𝗱𝗶𝗱𝗻'𝘁 𝗲𝘃𝗲𝗻 𝗸𝗻𝗼𝘄 𝘄𝗵𝗮𝘁 𝗮𝗺𝗼𝗿𝘁𝗶𝘇𝗮𝘁𝗶𝗼𝗻 𝗺𝗲𝗮𝗻𝘁.

𝗔𝗺𝗼𝗿𝘁𝗶𝘇𝗮𝘁𝗶𝗼𝗻: The length of time it takes you to pay off your entire mortgage. A typical amortization is 25 or 30 years. The 𝗹𝗼𝗻𝗴𝗲𝗿 your amortization, the 𝘀𝗺𝗮𝗹𝗹𝗲𝗿 the payments 𝗕𝗨𝗧 the 𝗺𝗼𝗿𝗲 𝗶𝗻𝘁𝗲𝗿𝗲𝘀𝘁 paid over time.

Mortgage 𝗧𝗲𝗿𝗺: The length of time you are committed to a mortgage rate, lender and conditions set out by your 𝗺𝗼𝗿𝘁𝗴𝗮𝗴𝗲 𝗰𝗼𝗻𝘁𝗿𝗮𝗰𝘁. Ex: 5 year fixed term.

So usually your mortgage contract sounds something like this "𝟱 𝘆𝗲𝗮𝗿 𝗳𝗶𝘅𝗲𝗱 𝘁𝗲𝗿𝗺 𝘄𝗶𝘁𝗵 𝗮 𝟮𝟱 𝘆𝗲𝗮𝗿 𝗮𝗺𝗼𝗿𝘁𝗶𝘇𝗮𝘁𝗶𝗼𝗻". Which means you have locked in your rate for 5 years but have 25 years to pay off your mortgage.

𝗔𝗻𝘆 𝗾𝘂𝗲𝘀𝘁𝗶𝗼𝗻𝘀?

Incredibly thankful for reviews like this.

Another happy Client (JUSTINE C.) is satisfied with our work and recommending Mortgage Tech. Our aim is to serve people in the best way and make them happy with our reliable services.

Need any help? Don’t forget to contact us at ☎️ 250-574-7399 for a consultation.”

🌍 Visit website: https://www.mortgagetech.ca/
📧 𝐄𝐦𝐚𝐢𝐥: [email protected]

Success may be just around the corner.

There are no shortcuts to any place worth going.

If you have an ideal goal, if you have a worthwhile goal - something that is difficult to do - then don’t look for the shortcuts; instead, focus on what you need to do in order to reach that goal.

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📞 𝐆𝐢𝐯𝐞 𝐮𝐬 𝐚 𝐜𝐚𝐥𝐥: 250-574-7399
📧 𝐄𝐦𝐚𝐢𝐥: [email protected]

Lucas Mathieu - Mortgage Tech updated their phone number.

Before you go and buy a new vehicle this weekend --->

Some vehicle payments are like 𝐦𝐢𝐧𝐢 𝐦𝐨𝐫𝐭𝐠𝐚𝐠𝐞 𝐩𝐚𝐲𝐦𝐞𝐧𝐭𝐬. No, really! It is not uncommon for vehicle payments to be $1000+ a month now.

» A $240K mortgage payment is roughly $1000/m
» $1000/m vehicle payment can reduce your pre-approval by around $90K

𝐌𝐲 𝐭𝐢𝐩: if you can swing it, wait to purchase your vehicle 𝐚𝐟𝐭𝐞𝐫 you purchase a home.

𝐅𝐢𝐧𝐝 𝐨𝐮𝐭 𝐰𝐡𝐲 𝐲𝐨𝐮𝐫 𝐦𝐚𝐱 𝐦𝐨𝐫𝐭𝐠𝐚𝐠𝐞 𝐢𝐬 𝐰𝐢𝐭𝐡 𝐲𝐨𝐮𝐫 𝐯𝐞𝐡𝐢𝐜𝐥𝐞 𝐩𝐚𝐲𝐦𝐞𝐧𝐭 𝐢𝐧𝐜𝐥𝐮𝐝𝐞𝐝.
Try our "𝐖𝐡𝐚𝐭'𝐬 𝐦𝐲 𝐦𝐚𝐱 𝐦𝐨𝐫𝐭𝐠𝐚𝐠𝐞?" calculator @ mortgagetech.ca

The Canada Mortgage and Housing Corporation (CMHC) is a crown corporation of the Government of Canada and the primary provider of mortgage insurance in Canada. Two other companies, Genworth Canada and Canada Guaranty offer similar coverage, but the CMHC name is so well-known that it’s become synonymous with the product itself.

It’s a requirement that all mortgages in Canada with less than 20% down payment be covered by mortgage insurance. Home buyers benefit from being able to purchase a home with as little as 5% down, making it much easier to enter the housing market. Mortgage insurance also improves the liquidity of the overall housing market.

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𝐈𝐧𝐜𝐨𝐦𝐞 𝐯𝐬. 𝐃𝐞𝐛𝐭. This is how the bank calculates your approval numbers. There are soooooo many other things 𝐭𝐡𝐞𝐲 𝐝𝐨𝐧'𝐭 𝐜𝐨𝐧𝐬𝐢𝐝𝐞𝐫 𝐢𝐧 𝐭𝐡𝐚𝐭 𝐜𝐚𝐥𝐜𝐮𝐥𝐚𝐭𝐢𝐨𝐧.

As a homeowner, you need to 𝐛𝐞 𝐩𝐫𝐞𝐩𝐚𝐫𝐞𝐝 𝐟𝐨𝐫 𝐭𝐡𝐞𝐬𝐞 𝐞𝐱𝐭𝐫𝐚 𝐜𝐨𝐬𝐭 & 𝐛𝐮𝐝𝐠𝐞𝐭 𝐚𝐜𝐜𝐨𝐫𝐝𝐢𝐧𝐠𝐥𝐲. Maybe it means purchasing lower than your max approval number, and buying a little more within your own comfortable monthly budget.

Some things the bank does not include in your approval numbers, but 𝐲𝐨𝐮 𝐡𝐚𝐯𝐞 𝐭𝐨 𝐩𝐚𝐲 𝐚𝐧𝐲𝐰𝐚𝐲𝐬:
» Quarterly Utilities (Water, Sewage, Garbage...etc)
» Cable & Internet
» Cell Phone Bills
» House Insurance
» Non house expenses (think child care, gas, entertainment, life insurance, money for savings, etc.).
» So much more.

Here is a good calculator from CMHC to determine your household budget.

cmhc-schl.gc.ca/en/professionals/industry-innovation-and-leadership/industry-expertise/resources-for-mortgage-professionals/determining-your-household-budget-worksheet

Whenever you get a mortgage, one of your first choices is deciding between fixed or variable rates. It’s easily one of the most significant decisions you’ll make since it’ll affect your monthly payments and the total cost of your mortgage over time. While it may be tempting to go with the lowest rate you’re offered, it’s not that simple. Both types of mortgages have their pros and cons.

Variable-rate mortgages generally offer lower rates and more flexibility, but if rates rise, you may wind up paying more later in your term. Fixed-rate mortgages may have higher rates, but they come with a guarantee that you’ll pay the same amount every month for the full term.

Discuss your queries and let us help you to do what is best for you.

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"𝐇𝐞𝐲, 𝐒𝐞𝐥𝐥𝐞𝐫. 𝐈'𝐦 𝐬𝐞𝐫𝐢𝐨𝐮𝐬 𝐚𝐛𝐨𝐮𝐭 𝐛𝐮𝐲𝐢𝐧𝐠 𝐲𝐨𝐮𝐫 𝐡𝐨𝐮𝐬𝐞. 𝐇𝐞𝐫𝐞'𝐬 𝐚 $𝐗.𝐗𝐗 𝐝𝐞𝐩𝐨𝐬𝐢𝐭."

There's a little more to it.

You give your realtor the deposit. They hold it in trust until you & your realtor remove all of your contract conditions (subject to financing, home inspection, yada-yada).

If you back out of the deal 𝐛𝐞𝐟𝐨𝐫𝐞 you remove your subjects, 𝐲𝐨𝐮 𝐠𝐞𝐭 𝐲𝐨𝐮𝐫 𝐝𝐞𝐩𝐨𝐬𝐢𝐭 𝐛𝐚𝐜𝐤.

If you removed subjects, this means you are now "𝐮𝐧𝐜𝐨𝐧𝐝𝐢𝐭𝐢𝐨𝐧𝐚𝐥" and are bound by the law to buy this house. If you for some reason collapsed the offer after this point, 𝐭𝐡𝐞 𝐝𝐞𝐩𝐨𝐬𝐢𝐭 𝐛𝐞𝐥𝐨𝐧𝐠𝐬 𝐭𝐨 𝐭𝐡𝐞 𝐬𝐞𝐥𝐥𝐞𝐫.

If all goes well & your home buying process is moving along. 𝐓𝐡𝐞 𝐫𝐞𝐚𝐥𝐭𝐨𝐫 𝐰𝐢𝐥𝐥 𝐠𝐢𝐯𝐞 𝐭𝐡𝐢𝐬 𝐝𝐞𝐩𝐨𝐬𝐢𝐭 𝐭𝐨 𝐲𝐨𝐮𝐫 𝐥𝐚𝐰𝐲𝐞𝐫. Your lawyer will then 𝐮𝐬𝐞 𝐭𝐡𝐢𝐬 𝐭𝐨𝐰𝐚𝐫𝐝𝐬 𝐲𝐨𝐮𝐫 𝐝𝐨𝐰𝐧 𝐩𝐚𝐲𝐦𝐞𝐧𝐭 & 𝐜𝐥𝐨𝐬𝐢𝐧𝐠 𝐜𝐨𝐬𝐭. They will call you, schedule a signing appointment, and let you know how much more you owe to seal the deal (remainder of down payment, property transfer tax, legal fees..etc.).

𝐀𝐧𝐲 𝐪𝐮𝐞𝐬𝐭𝐢𝐨𝐧𝐬?

Hey, Realtors - what can a client expect to put down as a deposit in your area?

"𝐖𝐡𝐲 𝐝𝐨𝐧'𝐭 𝐈 𝐣𝐮𝐬𝐭 𝐛𝐮𝐢𝐥𝐝 𝐚 𝐡𝐨𝐦𝐞?". I wish it were that easy, trust me - I've been there.

Today's post is just about 𝐛𝐮𝐲𝐢𝐧𝐠 𝐭𝐡𝐞 𝐥𝐨𝐭. The construction draw mortgage, which is the next step to building your dream home, will come at a later date.

1) 𝐒𝐞𝐫𝐯𝐢𝐜𝐞𝐝 𝐋𝐨𝐭𝐬. This is when there is Power, Water & Sewer to the lot line. Basically, a 𝐥𝐨𝐭 𝐭𝐡𝐚𝐭 𝐢𝐬 𝐫𝐞𝐚𝐝𝐲 𝐭𝐨 𝐬𝐭𝐚𝐫𝐭 𝐛𝐮𝐢𝐥𝐝𝐢𝐧𝐠 𝐨𝐧 𝐭𝐨𝐝𝐚𝐲. You will require a minimum 20% down payment for this lot. However, depending on your financial picture/location, 𝐛𝐞 𝐩𝐫𝐞𝐩𝐚𝐫𝐞𝐝 𝐟𝐨𝐫 𝟐𝟎 𝐭𝐨 𝟓𝟎% 𝐝𝐨𝐰𝐧 𝐩𝐚𝐲𝐦𝐞𝐧𝐭.

2) 𝐔𝐧𝐬𝐞𝐫𝐯𝐢𝐜𝐞𝐝 𝐋𝐨𝐭. This is literally the exact opposite of above. It will not have any power, sewage or water on the lot. 𝐓𝐡𝐢𝐬 𝐥𝐨𝐭 𝐬𝐭𝐢𝐥𝐥 𝐡𝐚𝐬 𝐚 𝐥𝐨𝐭 𝐨𝐟 𝐰𝐨𝐫𝐤 𝐥𝐞𝐟𝐭 𝐭𝐨 𝐝𝐨, 𝐛𝐞𝐟𝐨𝐫𝐞 𝐲𝐨𝐮 𝐜𝐚𝐧 𝐞𝐯𝐞𝐧 𝐬𝐭𝐚𝐫𝐭 𝐛𝐮𝐢𝐥𝐝𝐢𝐧𝐠. Typically an acreage style lot. This will require a 𝐦𝐢𝐧𝐢𝐦𝐮𝐦 𝐨𝐟 𝟓𝟎% 𝐝𝐨𝐰𝐧 𝐩𝐚𝐲𝐦𝐞𝐧𝐭.

Lots can be tricky to finance, because they don't provide much security to the lender. With no house on the land, it would be difficult to sell if they ever had to foreclose on you. This is why so much equity is required to buy raw land. Your overall financial picture & location of the lot will greatly impact the mortgage application outcome.

𝐀𝐧𝐲 𝐪𝐮𝐞𝐬𝐭𝐢𝐨𝐧𝐬?

Incredibly thankful for reviews like this.

Another happy Client (GARY B.) is satisfied with our work and recommending Mortgage Tech. Our aim is to serve people in the best way and make them happy with our reliable services.

Need any help? Don’t forget to contact us at ☎️ 250-574-7399 for a consultation.”

🌍 Visit website: https://www.mortgagetech.ca/
📧 𝐄𝐦𝐚𝐢𝐥: [email protected]

A client once told me this quote, but about about investment properties - love it!

Don't decrease the goal increase the effort.

It is tempting to retreat when things get challenging, especially if you're used to be successful. However, we are not defined by the obstacles we face, but how we OVERCOME them. Don't run away from challenges, run THROUGH them!

🌍 Visit website: https://www.mortgagetech.ca/
📞 𝐆𝐢𝐯𝐞 𝐮𝐬 𝐚 𝐜𝐚𝐥𝐥: 250-574-7399
📧 𝐄𝐦𝐚𝐢𝐥: [email protected]

We know the ins & outs.

Don't leave your builders mortgage to someone who's never done it before. We specialize in builders mortgages & have personally built a home.
We're here to help you through the process. Our goal is to get you in your dream home & enjoy the process along the way.

Do you see a smile on our faces?

This is the smile that we want to bring to your face by helping you sell and buy a property without any problem.

Let’s connect with us for a beautiful smile in the way of your real estate journey.

🌍 Visit website: https://www.mortgagetech.ca/
📞 𝐆𝐢𝐯𝐞 𝐮𝐬 𝐚 𝐜𝐚𝐥𝐥: 250-574-7399
📧 𝐄𝐦𝐚𝐢𝐥: [email protected]

Finding the right home to suit your needs means considering your lifestyle and budget now, as well as where you’ll be a few years down the road. Want more information or need help deciding the best option for you? Contact us today to learn more about your options when it comes to buying and owning a home.

🌍 Visit website: https://www.mortgagetech.ca/
📞 𝐆𝐢𝐯𝐞 𝐮𝐬 𝐚 𝐜𝐚𝐥𝐥: 250-574-7399
📧 𝐄𝐦𝐚𝐢𝐥: [email protected]

It is a common concern for clients on how their credit beacon score is affected when we do a hard pull on their credit, in order to complete financing. Recent request for credit only makes up 10-12% of your beacon score! So really, it has a minimal effect.

» Payment History = 35%
» Used Credit vs. Available Credit = 30%
» Type of Credit Used = 15%
» New Credit = 10-12%
» Length of Credit History = 5-7%

These factors make up your "Beacon Score". It's best to have a credit score above 680 and the closer you are to 900 the better!

Tip: Use your credit! Lenders are looking for proof that you are able to manage multiple credit accounts (credit cards, line of credits, etc.) before they extend you a mortgage.

'mo money, 'mo problems.

In BC, it's required to pay a tax when you purchase (or gain interest) in a home. This is called 𝗣𝗿𝗼𝗽𝗲𝗿𝘁𝘆 𝗧𝗿𝗮𝗻𝘀𝗳𝗲𝗿 𝗧𝗮𝘅 (PTT). It is calculated as a percentage of the purchase price. I usually compare this to buying a used car & paying a tax when you register it.

There are a few ways to 𝗾𝘂𝗮𝗹𝗶𝗳𝘆 𝗳𝗼𝗿 𝗮𝗻 𝗲𝘅𝗲𝗺𝗽𝘁𝗶𝗼𝗻.

𝗧𝗼 𝗻𝗮𝗺𝗲 𝗮 𝗳𝗲𝘄:
» First Time Home Buyers' Plan
» Newly built home
» Family transfer
» See BC Gov website below for more details on full & partial exemptions!

https://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax/exemptions

Default insurance is mandatory for all purchases with less than 20% down payment. This is an insurance that protects the lender, not you the purchaser.

» It is paid by the borrower (you, the purchaser).
» It can be paid for out of pocket or added to your new mortgage.
» Your default insurance premium is calculated as a percentage (2.8% to 4.0%) of the mortgage amount borrowed (the bigger the down payment, the lower the premium).
» Only available for purchase prices under $1MM
» 3 default insurance companies available: CMHC, Sagen & Canada Guaranty.

For the full post on default insurance, join my facebook group "BC Mortgage Q&A's" for more free mortgage tips!

https://www.facebook.com/groups/231510502216096