Pre-approvals are certainly beneficial. However, they can also be very disappointing if you are not prepared to know what they actually mean.

They DON’T mean…

They don’t mean that you have a mortgage. Until there is a Purchase Agreement (a written up contract to purchase a property) actually submitted to a bank and a commitment from the bank offered to the client, there is no mortgage. Your bank will often say, “You are pre-approved on a mortgage based on a specific rate that is being offered during this time.” Factors such as the amount of income you bring in, the amount of debt you have and even the property itself will determine whether or not the bank will actually give you a mortgage.

They don’t mean that the rate you are pre-approved for will be the rate you pay. Rate holds are temporary and depending on whether or not you qualify for the rate, you may not get what you initially bargained for.

To get a pre-approval that is solid it is important to know exactly what the terms of the pre-approval mortgage are. Pre-approvals should show exactly what you qualify for in terms of how much money you will be able to borrow for a mortgage based on your financial profile.

A good pre-approval…

A good pre-approval will reflect that you properly income qualify. As mentioned previously, many banks will give you a pre-approval based on a rate guarantee, NOT ON YOUR INCOME. This means that you may be in a lurch because the bank has not pre-approved you properly. A good pre-approval will be based on asking for documents to prove your income. The last thing you want is to be “pre-approved” only to be told after you’ve made an offer on a property that you actually don’t qualify.

A good pre-approval will let you know how much money you will need to provide for a down payment along with closing costs. There are more costs involved in purchasing a property than just the down payment. Costs such as legal costs, title transfer costs, property transfer tax costs (if applicable), appraisal costs (if applicable), etc. are often not talked about when initially going to your bank to ask for a mortgage loan.

A good pre-approval will secure a rate for 90 to 120 days. If rates are trending down, even when you have a negotiated pre-approval rate, you should be able to take advantage of the lower rate. Pre-approvals are excellent when rates are trending up. They secure the lowest rate, even when the bank has raised their rates. But be careful! Every bank has their own guidelines as to guaranteed rates and whether or not they will commit to the lower rate they initially negotiated with you.

A good pre-approval will be aware of lender guidelines concerning properties. Appraisals are not done for a pre-approval. But when contracting for a mortgage, depending on amount of down payment, contract details, etc. you may have to have one. The lender and the insurer ultimately look at the property to see if they deem it marketable and low risk for resale.

A good pre-approval gives the Realtor sure negotiating power. In today’s market there are properties selling so fast that financing has to be secured before going in to make an offer. A good pre-approval ensures that your chances of getting an accepted offer on a popular property are sure. Taking part of a multi-offer negotiation increases your opportunities for success, which can only be the result of a firm pre-approval.

A good pre-approval will prepare you for what you should expect your monthly mortgage spending budget to look like. With your pre-approval in place you know what kind of payments to expect, including the amount of taxes, strata fees (if applicable), etc. you will likely be paying. Your pre-approval explores the costs involved in purchasing a property and carrying a mortgage.

Contact me for your best mortgage options 705.669.7798 or trina@ndlc.ca

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Knowledge is power! With education comes limitless possibilities.

Are our kids learning the essentials in life? Are they being empowered to make life-changing decisions when they enter into the real world of economics?

The education that most kids in senior secondary school receive these days focuses on biology, math, physics, chemistry, English, physical education, social studies, mechanics, wood-working and home economics, not real life!

What about personal finance? We need to teach our kids about everyday economics.

Most people remember when they got their first credit card. What a disaster that was (for some people). If we aren’t taught about how to use credit, it can quickly get out of hand. Most people think that if they have a $1,000 limit all is good as long as they don’t exceed the limit —FALSE! Credit scores strengthen and increase if balances are at or less than 30% of the limit. There you go, you may have just learned something. What are most teenagers more concerned with, the growth of one’s mutual fund or the latest and greatest Apple product.

Why not educate our kids about credit, day-to-day banking, mortgage financing, stocks, mutual funds etc… before leaving the protective confines of the International Bank of Mom and Dad. 

My entire mortgage practice is based solely on information and education — just look at the title of this blog. ALL of my clients are provided options in order for them to make an informed choice. I encourage all my clients to ask as many questions as possible, if there are unanswered questions then I am not doing my job correctly.

It’s never too late to learn. The brain is a muscle that constantly needs exercise and craves new data. Keep feeding it. Ask questions, even if the answer seems obvious. Maybe the person answering will put a slightly different twist on the topic and reveal something new to you. This business I’m involved in yield new information on a daily basis, I thrive on it and it’s a necessity of survival.

Education is a priority for me, it should be for you too!

Contact me for your best mortgage options 705.669.7798 or trina@ndlc.ca

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#bestmortgageforme #executive #executive

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So you’ve graduated from high school and off to university or college. Before you start, take the time to set down some goals and a budget for your financial future as a post secondary student.

Your parents have probably been telling you to put aside some money from your part time job into savings. However, sometimes we don’t take the advice of our parents 🙂 So if you aren’t sure you are on track with your budget and savings, consider a few pointers that I have always found helpful and some from the experts provided in the links below.

To help with your financial future as a post secondary student here are a few easy steps you can set up a budget to live by including a savings plan:

1. Track your spending for 2-4 weeks. It depends on how disciplined you are but if you can track for the full month –all the better. Some expenses like gas for your car will be easy. It is the little trips for coffee that we sometimes forget and those can add up.

2. Make a chart or list of your expenses (all spending) and income. If you are spending more than you are earning you need to make some adjustments. You should not be dipping into savings to cover your monthly expenses. If you are earning more than you are spending — excellent!

3. Based on your budget, set an amount each month that goes into your savings account. I recommend 10% of your income. If you are living at home while going to school you may be able to set aside more in savings. Take advantage of that low or no rent situation!

4. Talk to friends and family to see who they use for investing their savings. You may be conservative or more aggressive — that is up to you to decide or to discuss with a financial planner. Set aside some money for short term needs and for a long term savings. You may have a goal to save $1,000 for new tires for your car and then accumulate a larger savings goal that you build on over the next 4 years of school to use towards moving out of the family home, buying a new car or a down payment on starting a business.

For more tips visit—

http://www.mymoneycoach.ca/impulse_spending/education.html

To learn more about common challenges for post secondary students, visit –

Five financial pitfalls that post-secondary students should avoid

Contact me for your best mortgage options 705.669.7798 or trina@ndlc.ca

#trinamortgages  #mortgages #ndlc #freedomofchoice 

#bestmortgageforme #executive #executive

If you found this information valuable, I only ask that you share with your friends and family.

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Are you an adult with an aging parent(s) and are you concerned about your parents’ ability to remain financially independent? Today, Canadian adults have many responsibilities, including the concern for their children’s well-being, as well as their parents’ quality of life and their debt. As life expectancy rises for the senior demographic, there is a growing trend of retirees not saving enough for retirement. Many Canadians overestimate how long their money will last, in part due to their longer-than-expected lifespan.

How can you help your parents maintain their financial independence?

Among the many concerns we have for our aging parents, the biggest concerns include their ability to retain their standard of living. Many senior Canadians prefer to stay in the comfort of their own homes to age-in-place, but we have noticed that their finances are not as stable as we anticipated and they may be struggling with:

• Health/Medical costs & expenses – Your parents’ health care costs are piling up.
• Monthly bills – You notice that your parent(s) are struggling to pay monthly utility and phone bills.
• Renovations and retrofits – Your parents’ home may require repairs. Their home may need retrofits in order for them to maintain their lifestyle, for example, they may need to install a stair lift because of knee problems.
• Revenue Canada debt – Your parent(s) struggle to pay their taxes and now have accumulated debt.
• Property taxes (in arrears) – Your parent(s) have forgotten one too many payments.

If your parent(s) are stressed over their finances, you can help them maintain their independence by introducing them to financing options to help them regain control of their retirement. The CHIP Reverse Mortgage from HomEquity Bank is a great option for older Canadians because it has helped thousands of senior Canadians deal with the most common financial struggles.

How a Reverse Mortgage can help

The CHIP Reverse Mortgage can provide your aging parent(s) with financial independence by unlocking up to 55% of the value of their home (tax-free) without them having to sell or move, in either a lump sum amount or monthly advance.

Contact me your Dominion Lending Centres mortgage professional to get your free estimate or to find out more information about how a CHIP Reverse Mortgage can help.

Contact me for your best mortgage options 705.669.7798 or trina@ndlc.ca

#trinamortgages  #mortgages #ndlc #freedomofchoice 

#bestmortgageforme #executive #executive

If you found this information valuable, I only ask that you share with your friends and family.

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Oh Canada; Our home and Native Land.
The land of opportunity.

You’ve arrived in a new country with hopes and dreams. If you’re an immigrant like me, one of these dreams is to own a home, and what better way to put down roots.
The first thing you want to do is open a bank account and start building credit as soon as possible with a credit card. Fortunately, there are also programs to help new Canadians purchase their first home and make it easier for your family to become established in Canada.
The new to Canada program will assist you with getting into home ownership sooner than you think.

Here is a list of documentation required:
• Valid work permit or verification of landed immigrant status
• Income Confirmation: You will need to provide proof that you have been working full time in Canada for at least three months. Proof of income through either an employment contract and pay stubs
• Proof of down payment: The total down payment will vary based on the final purchase price. The down payment can come from your own savings or it may be possible for your family to provide you with a gift. CMHC will insure newcomers with permanent resident status with as little as five per cent down, while non-permanent residents must have a 10 per cent down payment to purchase a home
• Purchase and Sale Agreement

A good credit history is important, however, as a newcomer, you may provide alternative credit supporting documentation.

Two (2) alternative sources of credit demonstrating timely payments (no arrears) for the past 12 months. The two alternative sources required are:
• Rental payment history confirmed via letter from landlord and bank statements
• One other alternative source (hydro/utilities, telephone, cable, cell phone and auto insurance) to be confirmed via letter from the service provider or 12 months billing statements

Buying a home in Canada is a big step. I a Dominion Lending Centres mortgage broker can assist you with all the details.

Welcome to Canada, the great White North.

Contact me for your best mortgage options 705.669.7798 or trina@ndlc.ca

#trinamortgages  #mortgages #ndlc #freedomofchoice 

#bestmortgageforme #executive #executive

If you found this information valuable, I only ask that you share with your friends and family.

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Financial difficulty can happen. Marital breakdown, economic downturn / job loss, health issues are all realty.

If I can give one piece of advice it’s this – in the face of financial difficulty the worst thing that a person can do is to go dark on their creditors.

In my experience, being 100% upfront and honest with creditors is by far the best 1st step in face of a cash crunch. CALL YOUR CREDITORS. EXPLAIN YOUR SITUATION. ASK FOR A TEMPORARY REPRIEVE. BE PROACTIVE WITH LOOKING AT A SOLUTION EARLY.

Trust me – most creditors DO NOT want to foreclose on homes, send you to collections or push you over the brink of financial ruin. Many will actually work to help you get back on your feet if you let them know early on that you are in a crunch. I have seen some of our lenders make amazing concessions for customers who hit a stumbling block financially when they have gotten in touch BEFORE they fall behind.

It’s when a person stops making minimum payments, avoids calls from creditors and just gives up on their situation / assumes they are up the creek or are too embarrassed to admit that they may not be able to meet obligations.

This looks to creditors that the person has abandoned the debt and is now looking to stick it to them.

Unfortunately, many times people call us at Dominion Lending Centres when they are already months behind and been served with collections / seizure notices and credit is ruined. At that time, they are too far gone and lenders/creditors are normally not able to help.

Any time a person calls to advise that they are looking for a solution to help with a cash crunch, the first question I ask is “Have you spoken to your creditors?”

Don’t be embarrassed, be proactive!! Save your credit standing, your assets and your future. Short term pain is much better than long term ruin any day.

I have seen it all at DLC and are here to help.

Contact me for your best mortgage options 705.669.7798 or trina@ndlc.ca

#trinamortgages  #mortgages #ndlc #freedomofchoice 

#bestmortgageforme #executive #executive

If you found this information valuable, I only ask that you share with your friends and family.

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This is the third part of a series by Pam Pikkert of things the average mortgage professional wished people knew so that they would not be held back by inadvertent missteps.

The next installment in the things we wished people knew series is targeted at the self-employed. This intrepid group of risk takers are entrepreneurial and help keep the economy moving but all too often we meet with these people and have to give news we would rather not give. So let’s look at what we wish they knew.

1. Surround yourself with professionals. You are the expert in your field without a doubt, but that doesn’t translate to being able to do it all.
Having a knowledgeable book keeper and a well-qualified accountant can save you a fortune in tax deductions and time lost. They are in your corner come tax time and heaven forbid through an audit by the CRA. Their job is to know the ins and outs of taxes so that you can put your focus on growing your business.
A lawyer is also invaluable. They will protect you against loopholes you didn’t know to look for in contracts.
Mortgage professionals are also a must. A Dominion Lending Centres Mortgage professional can help you with your home, a rental portfolio if you plan to diversify and commercial lending when you are ready.

2. You can’t have your cake and eat it too. The lending landscape in Canada has totally shifted in the past few years. Long gone are the days of simply stating what you earn without any verification of such and being offered a mortgage with little money down and low rates. If you choose to write off as much of your income as possible to avoid as much taxes as possible, then you will pay a higher interest rate on your mortgage

3. You have to keep your affairs up to date. That means getting the accountant prepared financials, filing your annual returns and most importantly paying your taxes. If you have a large outstanding tax balance, you are going to find it nearly impossible to get a mortgage. Taxes trump mortgage in order of who gets paid first so there are no prime or near prime lenders out there who will lend to you until these are paid.

4. The magical number in the mortgage world is 2. You have to have a 2-year history of self-employment with accompanying documentation to be able to proceed with the mainstream lenders in most cases. You also need 2 types of credit each with at least a $2,000 limit to keep your credit strong. Be aware of how debt may affect your purchasing ability. A large credit balance and a high vehicle payment will dramatically affect your ability to purchase a home. That $13,000 line of credit or a $400 vehicle payment will each decrease your purchasing power by $100,000.

The bottom line is this, make sure that you use your whole team. If you are wanting to buy a home within a couple of years then before you go fully self-employed or purchase that new truck or write off all the income you can, talk to your mortgage professional to ensure you are not inadvertently putting your home ownership goals on hold.

Contact me for your best mortgage options 705.669.7798 or trina@ndlc.ca

#trinamortgages  #mortgages #ndlc #freedomofchoice 

#bestmortgageforme #executive #firstimehomebuyer

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Most of us know that changing your mortgage payment from monthly, or semi monthly, to an accelerated bi-weekly payment instantly reduces your standard 25 year amortization by 2.58 years with today’s rates. (If you didn’t know that, you’re likely not working with the mortgage professionals at Dominion Lending Centres).

Sometimes, however, an accelerated bi-weekly payment option might not be available to you. Either the lender does not offer it as an option with that particular product, or they may not allow you to set it up if the accelerated payment knocks your qualifying ratios out of line. Although these situations are rare, they do come up from time to time. Here’s a workaround for those that might find themselves in this situation.

Open up a separate chequing account from which ONLY your mortgage payment will be withdrawn.

Then, from the account where your paychecks are deposited, set up an automatic transfer from this account, to your new chequing account. The automatic transer will be every two weeks and for half of the amount of your monthly mortgage payment. This is the amount that your accelerated bi-weekly payment would equal out to.

Throughout the year you will continue to automatically transfer exactly half of your monthly payment into your new chequing account, every two weeks. Then, those two months each year where you receive your paycheck three times in one month, you will also transfer half of your mortgage payment into the new account three times this month. When your monthly payment is withdrawn by your lender, there will be a half monthly payment remaining in your new account. This will happen twice throughout the year, leaving you with one full monthly payment remaining in your new chequing account. This is the accelerated effect.

Once per year, take this remaining balance in your account and apply it as a lump sum towards your mortgage, which most mortgages allow you to do. This lump sum goes directly towards your principal balance, interest free, thus reducing your amortization the same as anaccelerated bi-weekly payment would have.

It may not seem like much, but imagine no mortgage payments for the next two and a half years. Feels good, doesn’t it?!

Contact me for your best mortgage options 705.669.7798 or trina@ndlc.ca

#trinamortgages  #mortgages #ndlc #freedomofchoice 

#bestmortgageforme #executive #firstimehomebuyer

If you found this information valuable, I only ask that you share with your friends and family.

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In today’s market, variable and fixed rates are not too far apart. This makes most people think that the fixed rate is the way to go as it’s often viewed as the safest option.

Many believe that variable rate mortgages are for the daring and at any time your rate could double leaving you high and dry in the cash flow department. Many don’t realize that isn’t the truth at all.

The great thing about a variable rate is you have the option to lock into a fixed rate at any time you start feeling panicky, but I can assure you your interest rate will not be doubling over night. Even if your rate did go up by .25% the savings you would have already earned would put you on level playing ground, or you’d possibly still be in the lead.

Over the last 40 years variable rate mortgages have proven themselves to be the better choice for saving money and flexibility. I would also say that you’ll be given ample warning in the news and media that the Bank of Canada is planning a move on rates. When the rate does increase, I’m certain it will be slowly creeping up with just a quarterly rate increase at a time.

Where you’ll save the most money choosing a variable rate compared to a fixed rate is with the penalty.

With a variable rate, you’ll only ever be charged 3 months interest at any given time you choose to break your mortgage during the term. With a fixed rate it’s always the greater of Interest Rate Differential (IRD) or 3 months interest, and believe me those IRD penalties can be insanely large!

Statistics show that the majority of Canadians break their mortgage before the 5 year term is up, so save yourself some dough and consider going variable. There’s more to it than just the lower rate…and we here at Dominion Lending Centres can show you many mortgage options to fit your specific needs.

Contact me for your best mortgage options 705.669.7798 or trina@ndlc.ca

#trinamortgages  #mortgages #ndlc #freedomofchoice 

#bestmortgageforme #executive #firstimehomebuyer

If you found this information valuable, I only ask that you share with your friends and family.

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You’ve seen the real estate shows that dramatize the buying of a home and the star TV Realtor says “hey, let’s offer this price and have them pay you a $5,000 closing cost bonus”. Or, the real estate listing that offers a “decorating bonus of $3,500”. In both examples, the vendor (seller) is offering additional money as an incentive to buy their home.
While at first, the bonuses and offers seem great, you should know that unless you are paying cash for the house (ie: not getting a mortgage for the purchase), they are worth nothing in the end.
Let’s use the following example of a purchase price of $300,000 with a “decorating bonus” of $5,000. The seller accepts your offer and written into the purchase and sale agreement is the bonus of $5,000. When you get a mortgage, your lender also gets a copy of your agreement. When the lender reviews it, they will adjust your purchase price to $295,000. The reason for the adjustment makes sense when you are actually paying a net price of $295,000 for the property ($300,000 minus the value of the bonus of $5,000 = $295,000). The lender cannot use a purchase price of $300,000 since you are not paying the full $300,000 for the house after receiving the bonus from the seller.
Many buyers are surprised when this happens and are not often told of this by their Realtor, and unless explained by their lender or Mortgage Broker, will have a big surprise on closing when they must come up with an additional $5,000 out of their own pocket (since the lender has reduced the value of the property) then will receive the money back from the vender on closing, thus making it a net zero gain.
When paying cash, the above example doesn’t apply as there is no mortgage lender involved and you would pay $300,000 for the house and receive $5,000 on closing. Whether you were arranging a mortgage or not, the net outlay of cash is $295,000. The only difference with a mortgage is that you must pay the difference on closing up front to get the bonus.
It should also be noted, that with purchases of homes that include items of value that wouldn’t normally be included with a home such as a boat, large riding lawn mower, or even furniture, your lender can request that the purchase price of the home be reduced by the value of the item (since lenders won’t mortgage boats or furniture).
So, the next time you hear “closing cost bonus”, “decorating bonus”, “early closing incentive”, be aware that if you are mortgaging the property, your initial down payment will be increased by the amount of the bonus. My advice: just make the purchase price what you want to pay for the property. Don’t make it complicated with closing bonuses.

It’s always best to talk to me your dedicated Dominion Lending Centres Mortgage Professional.

Contact me for your best mortgage options 705.669.7798 or trina@ndlc.ca

#trinamortgages  #mortgages #ndlc #freedomofchoice 

#bestmortgageforme #executive #firstimehomebuyer

If you found this information valuable, I only ask that you share with your friends and family.

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