Tanya Mashkova - Mortgage Broker

When will I hit my trigger rate? And what is a trigger rate?

Trigger rate is unique to every mortgage.

https://www.canadianmortgagetrends.com/2022/08/variable-rate-mortgages-are-about-to-trigger-payment-increases/

Variable-rate mortgages are about to trigger payment increases - Mortgage Rates & Mortgage Broker News in Canada There's been a lot of discussion recently about how variable-rate mortgage holders could face their "trigger point." We're going to explore what that means, and the implications for borrowers.

Still debating on Buying vs Renting..?

Does Buying seem to be a scary move?
Well, don’t think of a rental market as a safe spot. 1️⃣ you never know when you might be asked to move out 2️⃣ your new rent might be significantly higher even if you manage to find a new place in current tight market

*** Vancouver tops the list as the most expensive rental market

https://www.canadianmortgagetrends.com/2022/07/canadian-rent-prices-stabilized-in-june-but-demand-is-expected-to-grow/

Important note on Investor Mortgages: a higher down payment is likely to be required for investment properties in the nearest future.

“…as part of the domestic implementation of the Basel III reform package in banks’ fiscal Q2-2023, we are increasing the risk weights, and thus capital required, for investor mortgages compared to the risk weights for owner-occupied properties,” the report reads.

While it’s not clear what this will translate to in terms of specific regulations, an increase in risk-weighing will likely mean a higher down payment requirement compared to owner-occupied mortgages.

https://www.canadianmortgagetrends.com/2022/04/osfi-flags-underwriting-issues-related-to-income-verification/

OSFI Flags Underwriting Issues Related to Income Verification - Mortgage Rates & Mortgage Broker News in Canada In its first Annual Risk Outlook, OSFI identified several potential issues in the housing market and outlined plann

“Unfair practices like blind bidding or asking buyers to waive their right to a home inspection can make the process of buying a home even more stressful for too many Canadians,” the federal budget reads. “To help level the playing field for young and middle class Canadians, the government will take steps to make the process of buying a home more open, transparent, and fair.”

https://storeys.com/canada-home-buyers-bill-of-rights-blind-bidding/

Canada to Ban Blind Bidding As Part of Home Buyers' Bill of Rights A ban on blind bidding is in the works as the federal government announced the development of a Home Buyers' Bill of Rights.

What is a mortgage stress test and How does it work?

A mortgage stress test is a high interest rate on a mortgage application that a bank or a mortgage broker uses to qualify you. Essentially, a mortgage stress test is a rate that is raised artificially in order to lessen the amount of mortgage for which you may qualify, rather than acting as a real interest rate viewable on your mortgage approval document, or that your payments could be based on. Read more below ⬇️

https://www.mpamag.com/ca/mortgage-industry/guides/mortgage-stress-test-things-you-should-know/398429?utm_source=GA&e=dGFueWEubWFzaGtvdmFAY2xlYXJ0cnVzdC5jYQ&utm_medium=20220320&utm_campaign=MBNW-Weekend-20220320&utm_content=07D20CEE-4209-4D62-A932-0CD109E21250&tu=07D20CEE-4209-4D62-A932-0CD109E21250

Mortgage stress test - Things you should know Essential facts to understand about the mortgage qualifying rate

“The economy is now in a place where moving to a more normal setting for interest rates is appropriate. The economy can handle it”

So shall we expect some rate increases in the nearest future? I think we shall. How will it affect you? It depends on a type of rate that you have - variable, adjustable, or fixed. Contact me to find out more.

https://www.canadianmortgagetrends.com/2022/03/higher-interest-rates-needed-to-tame-demand-control-inflation-macklem/

Higher Interest Rates Needed to Tame Demand, Control Inflation: Macklem - Mortgage Rates & Mortgage Broker News in Canada Bank of Canada Governor Tiff Macklem reaffirmed that controlling inflation is the central bank’s “number one job.” That’s why, on the heels of the country’s highest inflation reading in 30 years, the Bank of Canada will move ahead with further interest rate hikes, which Macklem said is the...

Prime rate increases by 0.25%.
Variable rates still look way more attractive than fixed rates

https://www.mpamag.com/ca/mortgage-industry/market-updates/major-banks-raise-prime-rates/397127

Major banks raise prime rates The news marks the first time Canada's banking giants have raised prime rates since 2018

RE/MAX: «Atlantic Canada is likely to become a major hub of price growth, with the most significant increases expected for Moncton (20%) and Halifax (16%), RE/MAX said. On the national level, the average residential sales price is projected to increase by 9.2% next year.»

https://www.mpamag.com/ca/news/general/what-will-happen-to-the-canadian-housing-market-in-2022/318563

What will happen to the Canadian housing market in 2022? RE/MAX delivers its verdict

Ontario And B.C. Still Lead As The Top Spot For Immigrants

The majority of permanent residents were attracted to the Big 3 immigration provinces, including British Columbia

https://betterdwelling.com/canadian-immigration-data-shows-the-biggest-month-in-at-least-a-century/

Canadian Immigration Data Shows The Biggest Month In At Least A Century - Better Dwelling Canadian immigration was slow through the pandemic but it’s now back with a vengeance. Government of Canada (GoC) data shows permanent resident arrival admissions soared in September. It didn’t just recover from the lull either. The number of arrivals in the month was the biggest number in at le...

⚠️ "The median household income needed to purchase a home in Vancouver - $215,354 per annum."

Contact me to see how much we can qualify you for.
As for a house purchase, potential income from a mortgage helper (basement suite) in a house can be added to your household income to increase your maximum mortgage amount.

https://www.canadianmortgagetrends.com/2021/11/housing-affordability-worsens-time-needed-to-save-for-a-down-payment-increases/

Housing Affordability Worsens, Time Needed to Save for a Down Payment Increases - Mortgage Rates & Mortgage Broker News in Canada Even before fixed mortgage rates started rising last month, housing affordability continued to deteriorate in the third quarter.

“Starting Friday, big banks will continue to move FIXED RATES, likely about 30 bps by the time the dust settles next Friday.”

The growing spread between fixed and variable rates will continue to drive borrowers towards variable rate mortgages.

https://www.canadianmortgagetrends.com/2021/10/fixed-mortgage-rates-set-to-climb-higher-as-bond-yields-take-off/

Fixed Mortgage Rates Set to Climb Higher as Bond Yields Take Off - Mortgage Rates & Mortgage Broker News in Canada Bond yields rocketed higher following today’s Bank of Canada rate decision, making it likely that fixed mortgage rates are about to climb higher.

Bank of Canada: overnight rate remains the same => Variable rates are not affected again

https://www.bankofcanada.ca/2021/10/fad-press-release-2021-10-27/?fbclid=IwAR3HkNJRCEWBBCEt6gR2ceIIjJJ5ozYqRm5wV0bpFgSZENu6Pv8q5XKFwaQ

Bank of Canada maintains policy rate and forward guidance, ends quantitative easing The Bank of Canada today held its target for the overnight rate at the effective lower bound of ¼ percent, with the Bank Rate at ½ percent and the deposit rate at ¼ percent.

In Vancouver:
= First-time buyers received on average gift of $180,000 from parents
= Mover-uppers received an average gift of nearly $340,000

https://www.canadianmortgagetrends.com/2021/10/parents-to-the-rescue-average-size-of-gifted-down-payments-rises-to-82000/

Parents to the Rescue: Average Size of Gifted Down Payments Rises to $82,000 - Mortgage Rates & Mortgage Broker News in Canada As home prices have risen sharply in recent years, so too has the amount of down payment assistance parents are willing to give their kids.

"Is it better to buy or rent a property?" - there have been a lot of debates around this question for years, but let's see what an actual research states on this matter.
https://marketing.rlpnetwork.com/Communications/Royal_LePage_Rent_vs_Buy_Report_Summary.pdf

Despite of all talks about real estate bubble in Canada, prices are gradually and consistently going up in BC, month over month, year over year. 📈

Insufficient supply of inventory keeps on creating excess demand which leads to price growth.

Don’t expect this trend to radically change anytime soon. British Columbia remains to be a very desirable place to live (and invest in).

If you have not purchased your home yet, let’s have a chat, there is no better time than now.

New immigrants is one source of our province population growth, but Canadians from other provinces choose BC as well over other provinces.

"British Columbia was the biggest winner, with net migration reaching 15,300 people in Q2 2021."

https://betterdwelling.com/canadians-are-changing-provinces-at-the-fastest-rate-since-the-90s-real-estate-bubble/?utm_source=Better+Dwelling+Website+Signup&utm_campaign=4025daa73b-fras_jan_112018-3094981_COPY_01&utm_medium=email&utm_term=0_bde8feedee-4025daa73b-309162097

Canadians Are Changing Provinces At The Fastest Rate Since The 90s Real Estate Bubble - Better Dwelling Canadians are fleeing for another province at one of the fastest clips in history. Statistics Canada (Stat Can) revealed its interprovincial migration estimates for Q2 2021. Crunching the numbers on net-flows, we can see which regions are losing the most Canadians. The last quarter saw the most peop...

Yup… recent and established immigrants are actively buying their homes.

If you are a landed immigrant, contact me to find out how you can buy your new home in BC 🏡.

If you can’t qualify righty away, we will build a strategy for you - so you can buy in the nearest future.

Residential Market Commentary - Election housing promises

Housing is definitely a very hot topic these days, and the major political parties are selling themselves to people who want to own homes. So who promises what?

https://www.firstnational.ca/mortgage-brokers/resources-for-mortgage-brokers/article/residential-market-commentary---election-housing-promises?utm_source=Residential+-+Broker+List+%5BENGLISH%5D&utm_campaign=d49b6f8266-EMAIL_CAMPAIGN_6_24_2019_COPY_01&utm_medium=email&utm_term=0_3a54a891f4-d49b6f8266-202328545&mc_cid=d49b6f8266&mc_eid=b32ede76fa

Residential Market Commentary - Election housing promises First National uses cookies and other web technologies to make sure you receive the best experience on our website, understand and improve our website, and provide relevant advertising. To understand more and to manage your preferences, visit our Privacy Policy.

Q2 2021: Canadian immigration is starting to improve to pre-pandemic levels.
BC Is Where 17% Of Permanent Residents Plan To Live.

The question is How Will it affect the Housing market...

It will definitely create an additional demand for rental units and eventually for First Time Home buyers niche.
And if supply does not catch up (we've had a supply issues for years and years here in BC), then we might once again find ourselves in a strong Sellers' market.
https://betterdwelling.com/canadian-permanent-resident-admissions-rise-above-pre-pandemic-levels/?utm_source=Better+Dwelling+Website+Signup&utm_campaign=8cfa1afae8-fras_jan_112018-3094981_COPY_01&utm_medium=email&utm_term=0_bde8feedee-8cfa1afae8-309162097

Canadian Permanent Resident Admissions Rise Above Pre-Pandemic Levels | Better Dwelling Canadian immigration is starting to improve to pre-pandemic levels. Government of Canada (GoC) data shows permanent residents admitted made a big jump in Q2 2021. The increase was actually enough to push the quarter to pre-pandemic levels. Admissions are still relatively weak, but it’s a huge impr...

Buying a Rental Property 🤩

If buying a rental property sounds like a dream to you, then I can assure you that with proper planning and a good mortgage broker by your side, this is a dream within a reach. 🧗

What do you need to know about buying an investment property:

1. A portion of your future rental income can be used to qualify you for a new mortgage. Market rents can also be used if a property is vacant. Depending on your situation, a good mortgage broker would know which lender/bank to submit your mortgage application to as not all lenders treat rental properties equally. 🏙

2. Even if your rental property income does not cover all expenses associated with the property - mortgage payment, property tax, strata fees, etc, it doesn’t make it a bad investment. Remember that part of your mortgage payment pays down your mortgage principal amount and builds up your equity. You can access this equity later when you refinance or sell. 💰

3. Net rental income is taxable and will be added to your total annual income for tax calculation purposes at year end. Net rental income is the difference between rent collected and expenses associated with earning this income, such as strata fees, property taxes, insurance, mortgage interest, and maintenance costs.

4. When buying a rental property, you need to have a minimum 20% downpayment. But fund for downpayment can come from your primary residence equity. Some lenders accept gifted or partially gifted downpayment even for rental units.

5. If you decide to sell your rental property in the future, you might have to pay taxes on capital gain. Capital gain is the difference between the final selling price and original purchase price if your property has gone up in value. Only 50% of Capital gain on real estate is taxed (great!), meaning that for an average person, the effective tax rate will be less than 25%.

6. Rental properties is a great way to accumulate and grow your personal wealth.

📲 Contact me to find out how you can fulfil your dream of owning an investment property.

Tanya Mashkova - Mortgage Broker Tanya Mashkova,
Mortgage Broker at
DLC Clear Trust Mortgages

As per a recent survey by Royal LePage, around 10% of all Canadians own at least 2 properties.

In Greater Vancouver area this number is even higher and reaches 14%❗️

If you are wondering where people get funds for down payments 💵 for their second properties… 42% of Vancouverities who have a second property said that they used their equity from their primary residence. So they refinanced their existing property.

Need more info on refinancing? Give me a call at 📲 604-446-2659 for a free consultation.

I hear this question a lot - I am self-employed, can I still qualify for a mortgage? 🧐

Yes, Yes and Yes! ✅

Whether you run your business as a sole-proprietor (non-incorporated) or as a corporation, you can always apply for a mortgage.

➡️ If you are a sole-proprietor, then we can either work with your T1 form and Statement of Business activity or we can use your 6-month business statements whichever benefits you more.

➡️ If you operate as a corporation, that is totally fine as well. We will have a look at your Salary, Dividends and Company Net Income to figure out what is the best strategy to use.

With a variety of banks and other lenders that we work with, we will manage to find the right solution for you. Sometimes we gotta be a bit creative, but hey, that’s what I am here for! 👩🏼‍💻

Reach out today to discuss any of your mortgage, refinance, debt consolidation needs.

How to break the cycle of living PAYCHEQUE TO PAYCHEQUE…? 💵

I talk a lot about mortgages, real estate purchase, refinance, but WHAT IF you are not at this stage yet, what if you are still trying to figure out how to stop living paycheque to paycheque?

I wanted to share a few tips ✅ with you on how to become financially more stable and start accumulating some wealth. Below are some GREAT TIPS, but will you TAKE THEM TO ACTION? 🏃🏽

➡️ Pretend You Earn Less Than You Do: Why? Cause this way you can put 5-10% of your income into your savings from every single paycheque. It’s always better to do an auto direct transfer every time you get paid.
➡️ Create Budget: Easy? A lot of people think that they know how much they spend on a monthly basis, but do you really know how much you spend on non-discretionary expenses such as rent, groceries, hydro, other utilities, vs discretionary expenses such as dining out, entertainment? Break down all your monthly expenses into these two categories.
➡️ Build an Emergency Fund: Seriously! Start with as little as you can, but be consistent. You might thank yourself for these extra money one day.
➡️ Consider Downsizing: Yup! Sometimes we have to reconsider our current lifestyle to get on a better foot. Try to find a cheaper rent (maybe find a roommate), switch to a more affordable gym plan, buy a less expensive vehicle (a used one too).
➡️ Pay Down Debt: Bad debt! We are talking here about credit card or unsecured debt, any debt that you pay a high interest on. If you have a lot of credit card debt, make sure that you pay the minimum payment on all of them and choose one that you will be paying off aggressively. Once it’s paid off, attack the next one.

Quite an interesting statistics which covers all provinces of Canada and various districts.

As for BC, not a surprise that the most growth has been seen outside of Greater Vancouver and Lower Mainland areas for the last 5 years.

Highlights:

= The Bank of Canada will hold its target for the overnight rate at the effective lower bound of 0.25%

= The Bank also announced a further tapering of its bond program, reducing its weekly purchases of government bonds to $2 billion – a decrease of one-third.

= Housing market activity is expected to ease back from historical highs, while the pace of recovery in the labour market is predicted to vary between industries.

= The Bank’s Monetary Policy Report indicated that growth should rebound strongly as the economy reopens after COVID-19’s third wave. Growth of around 6% is forecast this year, slowing to around 4.5% in 2022 and 3.25% in 2023.

https://www.mortgagebrokernews.ca/news/bank-of-canada-makes-latest-rate-announcement-358104.aspx?utm_source=GA&utm_medium=20210714&utm_campaign=MBNW-Breaking-20210714&utm_content=07D20CEE-4209-4D62-A932-0CD109E21250&tu=07D20CEE-4209-4D62-A932-0CD109E21250

Bank of Canada makes latest rate announcement The eagerly awaited statement was also accompanied by the release of the Bank’s quarterly Monetary Policy Report

First Time Home Buyer? Tips on DOs & DON’Ts.

If you are buying a home for the first time, there must be a lot of things on your mind. 🤯

Let me walk you through a few important points to make sure they are not missed or underestimated:

DOs:✅✅✅

1. Find a good unbiased mortgage professional and make sure you provide all relevant and true information to them. It’s crucial to be honest as both you and your mortgage broker work towards one goal - find you the best mortgage solution and get you approved. 🏦
2. Find an experienced real estate agent. You can definitely research the real estate market on your own and even find a perfect home to buy, but do you have the right knowledge on negotiating an offer, reviewing building plans or strata minutes? It’s important to have a professional by your side who you can rely on. 🏡
3. Keep your financials in tact. Try not to move any significant funds around until you speak to your mortgage professional. 💰
4. Consider buying a home which needs a little bit of love and care if you cannot afford something newer with your budget. You would be surprised how a few layers of fresh paint and simple floor replacement can do magic. And remember this is your first home and not necessarily the last one. You can always upgrade / upsize when you are ready for it. 💚

DON’Ts:❌❌❌

1. Don’t take on any additional debt prior to purchasing your home. Car lease, car financing etc can wait until you get the keys to your new home. Any additional debt will reduce the mortgage amount you can qualify for. 🚙
2. Don’t co-sign for anyone as a Guarantor as there are good chances this will appear on your credit bureau and affect your mortgage amount. 📃
3. Don’t give up! There are always ways to get your feet into the real estate market. You just need to be open for options. 💪🏻

Call me if you have any questions about buying or financing your home 📲 604-446-2659

Hi! It’s very nice to virtually meet you. 🤝

I am an independent mortgage broker and a part of huge Dominion Lending Centres (DLC) Family.

What does it mean to you?

1. I don’t work for any specific bank. I work for you and search for the best mortgage solution for you! ✅

2. As a part of a huge DLC family, I have access to some unique mortgage products including lower rates (some of them are exclusive to DLC brokers). ‼️

3. All my consultations are free. Moreover, most of my services are free, and paid by financial institutions, not you.

So how can I help YOU?

If you have any questions about real estate purchase, it’s financing or refinancing, give me a call 📱 at 604-446-2659

Moving on up the property ladder.

First of all, we have to admit that in todays’ reality and with current real estate prices, there are not that many people who can afford buying a house as their first home.

Most of us have to start with an apartment. And that’s totally fine as you are building your equity 💰💰💰

Then when we have progressed in our careers, built up some equity, we might start thinking about moving into a larger home 🏡

Here are the main things to consider:

✅ Can you afford to make the move and buy something bigger?
This is definitely a question for a mortgage broker.
We will look at your current household income, your downpayment (which might be coming from the sale of your existing apartment and/or might be gifted) and see how much we can qualify your for a new purchase. If a new potential house has a rental suite, great, we can use this rental income too.

✅ Are you breaking an existing mortgage term?
You need to know whether there any penalties associated with breaking your current mortgage.
Some of the mortgages might be ported to a new purchase. But is it always worth it? No! We need to look at your current mortgage interest rates and other contract terms. Sometimes you might be better off if you break the contract and go to a new lender with better terms.

✅ How much will you spend on Fees and Taxes?
Property transfer taxes paid to the Government on each real estate purchase transaction.
Realtor fees on the sale of your apartment. They might vary between 2 to 5% of the home’s selling price.

✅ What are the Costs of new home ownership?
Usually bigger property comes with higher property taxes.

Lots of things to consider, but with the right professionals by your side and proper preparation, it is entirely doable!

☎️ Contact to find out more. I am offering you my expert advice and guidance.

Starting June 1, 2021 both insured and uninsured mortgage borrowers (new home purchasers 🏡 and those who want to refinance their existing mortgages 💰) will be subject to a new stress test.

What does it actually mean?

Borrowers will need to prove that they can afford payments based on the greater of:
= contract rate plus 2%, or
= a new floor rate of 5.25%, up from the current 4.79%.

This change will be decreasing the borrowing power by about 4-5%.

For example, if a client could qualify for 1 million dollars under the old rules, now this amount is reduced to approximately $950,000.

IMPORTANT ❗️❗️❗️
✅ Actual rates still remain near record low which means that your actual borrowing costs will also remain low.
✅ There are still some lenders (credit unions) which do not have to follow these stress test rules and offer quite competitive mortgage rates.

☎️ Contact to find out more