Northern Asset Management Mortgage

With interest rates rising, should you lock in your rate?

No one has a crystal ball but past performance can give us an idea.

Variable rates go up and they can go down. Don't panic and lock in when it goes up, it's important to think long term.

Don't get caught up in the panic! Let's connect to discuss more.🏡📈

Yogi’s ready for a run to game 7! Let’s go oilers! 💙🧡

Have you heard of ‘house rich and cash poor’?

Whether it’s taking equity out to renovate, consolidate debt or buy an income property, refinancing your home can put money back in your pocket.

Interested in learning more about unlocking the equity in your home? Let’s connect for a free strategic brainstorming session to discuss your options to utilize your equity!

Let’s go raptors!! 🏀🦖💜

We do not inherit the Earth from our ancestors, we borrow it from our children. 🌎 💕

Don't panic!

That's a monthly payment increase of approximately $24 per month per $100,000 balance over 25 year amortization.

The Bank of Canada is raising its target for the overnight rate by 0.5 per cent to 1 per cent.

In today’s announcement, the Bank indicated a “substantial upward revision” to its inflation outlook, citing Russia’s invasion of Ukraine, price increases in oil and other commodities, and supply disruptions as the main reasons behind that prognosis. The Bank says it will also stop buying government bonds and begin quantitative tightening beginning April 25.

The federal government released the 2022 budget with an expected $56.6 billion in total spending over the next five years. One of the biggest issues they addressed was making housing more affordable for Canadians.

Have you checked out my free app - My Mortgage Toolbox? It includes a ton of great features from calculating homeownership costs to getting a pre-qualification. ✅

So how does it help you?

Clients - you most likely have a smartphone...why not take 45 seconds, answer a few questions, and have an instant pre-qualification certificate?🤳Note: this does not replace a pre-approval but does give you a clear idea of what you will qualify for before speaking with a mortgage broker to get approved.

Real Estate Agents - You are able to do instant pre-qualification on site at your open houses and then email the potential clients their certificates. This is a great conversation starter and will help your client feel that they are in the right priced home for them!

Click the link in my bio and “Download My Mortgage Toolbox App” to set up a profile to get started today for free!

Did you know you can add upfront renovation costs into your new mortgage?

A Purchase Plus Improvements mortgage allows you to borrow additional cash to use towards renovations to your home and make the necessary improvements. The funds used for the renovations will be added to the regular mortgage payment, making it easy to purchase your home and renovate it at once.

The first step is to find the home you’d like to purchase. Perhaps it needs new large appliances, a new kitchen or windows. Determine exactly what renovations you need and obtain an idea of what they will cost. A contractor can provide a quote to make this process as smooth as possible.

Together, we will then review the proposed improvements and quotes to line up financing that will include the cost of renovations.

Let’s connect for a free strategic brainstorming session to discuss if this is right for you!

The Bank of Canada announced a rate increase as well as addressed how global conflicts can affect the Canadian economy.

Check out my blog post for a full review.
https://nammortgage.com/general/bank-of-canada-increases-benchmark-interest-rate/

💙💛 Stand With Ukraine 💛💙

Canada is proudly home to the largest Ukrainian population in the world, outside of Ukraine and Russia. These incredible people need our support right now as they’re fighting for their freedom.

🇺🇦https://how-to-help-ukraine-now.super.site/

🇺🇦 https://donate.redcross.ca/page/100227/donate/1?locale=en-CA

Do you consider mortgage penalties when choosing a mortgage?

There are different ways of calculating mortgage penalties. This is why knowing the penalty calculation of your mortgage is incredibly important! If you end up paying a huge penalty to break prior to the end of your term, your low fixed rate meant nothing. ⁠

Fixed Interest Rate mortgages use an Interest Rate Differential (IRD) calculation. It varies from lender to lender, but they typically use the discount you received x your amount remaining x months left. This is why using a lender who uses a lower posted rate (like most monoline lenders) is an important consideration.

vs.⁠
Variable Interest Rate mortgages only charge 3 months' worth of interest which can be substantially lower! If you have a higher tolerance for risk, most clients save having a variable-rate mortgage.
Variable Interest Rate mortgages only charge 3 months worth of interest which can be substantially lower! If you have a higher tolerance for risk, most clients save having a variable rate mortgage.

Let’s connect for a free strategic brainstorming session to discuss which is right for you!

Did you know you can add renovation costs into your mortgage?

A Purchase Plus Improvements mortgage allows you to borrow additional cash to help you spruce up your home and make the necessary improvements to make it move-in ready. The cost of borrowing will roll into one payment, making it easy to purchase your home and renovate it once the deal closes.

First, you have to find the home that you’d like to purchase. Maybe it needs a new furnace, new floors, coats of paint, a kitchen renovation, or other such improvements. Determine exactly what renovations you need (and want) and obtain an idea of what they will cost. A contractor can provide a quote to make this process as smooth as possible.

We will then review the proposed improvements and quotes to line up financing that will include the cost of renovations.

Let’s connect for a free strategic brainstorming session to discuss if this is right for you!

As current rates remain low, it's a great time to capitalize on them!

While each situation is unique, there are many reasons to consider refinancing but rest assured: we will run all the numbers, to see if there is a cost-benefit to you and you get to make the final decision. When determining the numbers, we take into account your current mortgage, penalty, and interest rate to run a cost comparison that will let us know the cost savings of refinancing.

How does your down payment impact your mortgage?

Reverse mortgages are becoming more popular in Canada, but what are they?

A reverse mortgage is an effective way for you to access your home equity - how you want, when you want.

When retirement planning, Canadian’s should consider their entire portfolio of assets. As homes commonly represent the largest asset in a person’s portfolio, accessing equity from it may be the optimal strategy.

Interested in learning more about reverse mortgages and if they could be right for you or a loved one? Let's connect for a free strategic brainstorming session!

Affordability is a term that’s both quantifiable (lending institutions use a formula) and a little bit subjective (lifestyle considerations factor in, too). Affordability is assessed by your gross debt service ratio and total debt service ratio.

Gross Debt Service Ratio (GDSR)- Homeownership costs (mortgage payments, property taxes, heating and, if applicable, 50% of condo fees), relative to household income.

Total debt service (TDS) ratio- Homeownership costs (as outlined above) plus debt payments (credit cards, lines of credit, student loans, car loans, etc.), relative to household income.

To qualify for mortgage insurance (mandatory for any home purchase with a down payment of less than 20% of the cost of the home), the highest allowable GDS ratio is 39% and the highest allowable TDS ratio is 44%.

The first metaverse mortgage!
https://markets.businessinsider.com/news/currencies/metaverse-mortgage-terrazero-decentraland-virtual-land-real-estate-crypto-finance-2022-2?amp&fbclid=IwAR2VGrXjS1W54p7-VcB8OFDlfS1SVhEltoMzdMnzyBQBL6XE0Y6z3J3onCg

Metaverse mortgages are being issued to buy virtual land — and one of the first ever was just signed for a property in Decentraland "Mortgages and financing availability will expedite the development and adoption of the metaverse," TerraZero CEO Dan Reitzik said.

There are eight scheduled announcement dates per year in which the Bank of Canada can choose to modify the overnight lending rate or keep it the same. This rate is used to set the Prime Rate which is used in a variable rate mortgage.

Why is this important to you?
▪️ If you currently have a variable rate mortgage, and a prime rate increases, then your rate will increase
▪️ The overnight rate can only be increased by 0.25 basis points each announcement.
▪️ Depending on the type of variable rate you have, your monthly payment could fluctuate

Do you have more questions? Let's connect for a free strategic brainstorming session!

Today, the Bank of Canada made the it's first scheduled interest rate decision of the year. They have left the overnight lending rate at a record low 0.25%, defying the markets.

The Bank of Canada has reiterated its expectation for an interest rate hike later this year.

What does this mean for you?

If you're planning to buy, refinance, or take advantage of an early renewal, now is the time!

Lock in your rate with a pre-approval before a rate hike!

Lock in your interest rates today!

A Pre-Approval gives you the certainty so you know how much you can afford and an edge over other buyers by having financing already in place.

Lets get you pre-approved today!

My Mortgage Toolbox is a great tool for current and future homeowners!

Get a pre-qualification in 60 seconds, determine how much you can afford, compare your rate and many more features!

Check out my free app, link available in my insta bio and on my website:
https://www.dlcapp.ca/app/emily-riddell

With a new year comes new resolutions, why not add improving your credit score?!

Here are a few helpful tips to obtain and maintain a high credit score to increase your chances of an easy approval:

▪️ Pay your bills on time
▪️ Make frequent payments
▪️ Ask for a higher credit limit
▪️ Keep utilization below 30% to maximize your credit building
▪️ Keep your old credit cards open
▪️ Lenders consider how long you've had your credit card, the more credit history, the better!
▪️ Dispute any possible errors on your credit report
▪️ Have a variety of credit accounts
▪️ Each type of loan can benefit your credit score differently. Have a minimum of 2 trade lines.

Interested in learning more about improving your credit score? Let's connect for a free strategic brainstorming session!