Grande Prairie, Alberta Mortgage Rates Feb 6, 2019 and downpayment

Downpayment 6 Feb

 

Grande Prairie, Alberta Mortgage Rates Feb 6, 2019

 

Grande Prairie, Alberta Mortgage Rates for Feb 6, 2019

Here are this weeks mortgage rates for Grande Prairie, Alberta.

 

Everyone always has downpayment questions. How much do I need to put down on my first house? If I put more down do I get a lower rate?  Do I need to put a different amount down if it’s not my first house? What is the downpayment if it’s a rental home? So this week we post our Grande Prairie, Alberta Mortgage Rates and talk a bit about downpayment.

How much do I need to put down on my first house?

As long as it’s for your primary residence:

As of February 2019 in Alberta, current mortgage rules are that you only have to put 5% down on your first house, or your second or even 20th home. If you are buying a home that’s meant to be your residence you can do just 5% down. Given Grande Prairie’s Residential Average Home Price (September 2018) of  $320,744 that 5% would be $16,038.

You could get a lower rate in Grande Prairie with a higher downpayment

That doesn’t mean it’s always a good idea to just put 5% down. If you put 35% down here in Grande Prairie instead of 5%, many companies will give you their best rate. Putting 5% down gets you a home in Grande Prairie, but not always the best mortgage rate.

Put more than 5% down to avoid mortgage default insurance

If you can afford to put 20% down on a home in Grande Prairie, you can avoid having to pay for mortgage default insurance. Mortgage default insurance is mandated in law by the Canadian government. As of February 2019, it is required to have default insurance on your mortgage if you put less than 20% down. Given Grande Prairie’s Average Home Price of $320,744 when putting 5% down or $16,038 you will pay $12,188 when mortgage default insurance is added to your mortgage. Go here to calculate that mortgage default insurance for any scenario. You don’t have to pay it up front, but that mortgage default insurance does add up!

Your Credit Score can affect downpayment

Mortgage lenders will consider your credit score when you go to get a mortgage as well. If you have excellent credit then 5% down is no issue, but maybe your score has dropped below 670 when you pull your credit report. What if your credit score is only 620? A lower credit score may mean that you have to put more than the standard 5% down here in Grande Prairie to make mortgage lenders comfortable issuing a mortgage.

This house won’t be my primary residence

How much downpayment do I need to purchase a rental home in Grande Prairie, Alberta? You will need to have a downpayment of a least 20% ready to purchase a rental home. Let’s take our average home price of $320,744 for Grande Prairie in September 2018 again that is $64,149 as downpayment. Given your credit score, the number of rentals you already own, or the condition of the home you are purchasing you may be required to put down much more than 20%. One good point, putting at least 20% down you avoid mortgage default insurance.

 

There are many situations that can change what amount of Downpayment is required here in Grande Prairie Alberta. For clarification, or just to have a professional run the numbers call our office here in Downtown Grande Prairie at 780-513-6611.

Or go here to fill out a form with questions.

Jillian Napen, Office Manager at HT Mortgage Group, Part of Dominion Lending Centres in Grande Prairie

 

 

 

 

A CHIP SUCCESS STORY

Mortgage Tips 4 Jan

Reverse Mortgages are available in Grande Prairie too!

A few years ago, I met with my Home Equity Bank representative. He was trying to encourage me to go visit my financial adviser referral partners to offer the Chip Reverse Mortgage product. I explained that I did not know anyone who had a reverse mortgage so it was hard to promote to financial advisers or anyone.

I asked him to tell me a success story and he came back with a great one that ticked most of the boxes. A couple in their mid-70s had met with a financial adviser to go over their portfolio and financial situation. They wanted to sell some of their investments to get a little cash.

What the adviser saw troubled him. The couple had about $200 a month left over after they paid for their bills and groceries. What’s more , they were driving a 20-year-old car, their home needed repairs and they hadn’t been on a vacation in years. It was a classic case of house rich, cash poor.

The adviser contacted Home Equity Bank and they appraised the house. The couple were eligible for $200,000 based on the value of their home. They took this money and the adviser invested a little more than half in funds that would provide them with $1100 a month in income. They took $25,000 and bought a new car, did some repairs to their home and took a vacation. They took the balance and used it to help out their grandchildren with university with tuition. With one move, they were able to increase their cash flow, make their home more comfortable, do repairs, enjoy their retirement and help out family.

Now that it’s fall and the spring home-buying rush is over, perhaps it’s time for you Dominion Lending Centres mortgage brokers out there to see if you can help out another segment of the population. Contact your financial adviser partners, your certified Seniors Real Estate Specialists and past clients with elderly parents. There are a lot more people out there that could use your help.

David Cooke

DAVID COOKE

Dominion Lending Centres – Accredited Mortgage Professional
David is part of DLC Clarity Mortgages in Calgary, AB.

 

4 REASONS WHY MORTGAGE BROKERS ARE BETTER THAN BANKS

General 26 Nov

So Much Better

I am often asked if it’s hard to compete with the banks. While they may offer competitive rates at times, right now we have much better rates than the banks. However, we have certain advantages which allow us to blow them out of the water most of the time.

  1. More Choice

– banks are limited to around 5 products that they can offer you. They will try to fit you into one of their products even if the financial institution next door has a better one for you. Brokers have access to banks, credit unions, trust and mortgage companies as well as private lenders.

2. Better Representation –

Brokers are your champions bankers are employees. They put their employer first . They won’t offer you the best rates unless you are a good negotiator. Brokers are licenced by provincial organizations and have to follow a code of ethics which requires that we put the consumer first. We also negotiate the best rate, terms and conditions for you. If you need to break the mortgage before the end of the term, we can assist you with that and perhaps help you to avoid paying a penalty.

3. More Benefits –

If you are moving into a home that is more than one year old, you probably do not have a home warranty. Brokers have 3 lenders who offer home warranties, which can cover repairs to the plumbing, heating and electrical systems with a small deductible. Two of the lenders even offer this as a complimentary service for the first year while the third lender offers it for the length of the mortgage. As Dominion Lending Centre brokers, we also have discounted rates for moving services and boxes from a large national moving company .

4. Better Protection –

I saved the best for last. We offer portable mortgage life and disability insurance.

It may not sound like much but we have the same coverage as the banks offer with one important difference – portability. While we take care to place you with a good lender, circumstances change and lenders may not offer favourable terms on renewal. If you try to leave a bank after developing a condition like high blood pressure or having a heart attack, you will have to re-apply for insurance coverage and may be denied. There are hundreds if not thousands of unhappy bank clients who are stuck paying high interest rates because they are forced to stay with a lender. Broker insurance gives you the independence to move from lender to lender depending on who is willing to offer you the best rates and terms. This may not sound like much to you now but it’s a real game changer for anyone who knows someone who have had this happen to them.

Is it difficult to compete with the banks? No – we have them beat hands down.

David Cooke

DAVID COOKE

Dominion Lending Centres – Accredited Mortgage Professional
David is part of DLC Clarity Mortgages in Calgary, AB.

All About Pre-Approvals

Mortgage basic's 3 Sep

ALL ABOUT PRE-APPROVALS

Why is a pre-approval important to people who live in Grande Prairie? Well why wouldn’t you want to make your home buying process simpler?

If your in the market for a new home, that’s great – but if you’re not already pre-approved from your mortgage broker, be sure to read on.

Pre-approvals are very important for two reasons.

They give you confidence in knowing that a specific amount of financing is available for you.
A pre-approval can put you in a positive negotiating position against other home buyers who aren’t pre-approved.
Not all pre-approvals are the same, though. There are essentially three different kinds.

  • The first occurs when you meet with a mortgage professional and tell them how much you make. They’ll say something along the lines of “Great, you’re pre-approved.” The mortgage professional has only looked at your income. There is no real pre-approval.
  • The second kind is when a mortgage professional asks you how much you make and then pulls your credit bureau. This allows a mortgage professional to lock in your mortgage rate for up to four months. This pre-approval still isn’t a sure thing.
  • The third kind of pre-approval – and the one that we do – is a lot more encompassing. We get all of your papers prepared right off the bat, which allows us to eliminate any unforeseen issues with your approval. Sure, it’s more work up front – but we do this because it’s the right thing to do.

If you’d like to get a pre-approval, contact a Dominion Lending Centres mortgage professional! We’re here to help.

Eitan Pinsky

EITAN PINSKY

Dominion Lending Centres – Accredited Mortgage Professional
Eitan is part of DLC Origin Mortgages based in Vancouver, BC.

Darren Ward, A good time to switch lenders?

Darren Ward 16 Apr

Our mortgage agent of the week is Darren Ward, coming to us from a corner office 700km away in Calgary. Over 80% of Darren’s business is still being done here in Grande Prairie and the surrounding areas.

Darren was born in Grande Prairie and raised in La Glace so he’s ready to answer your local questions!

Q – Can I switch from my current mortgage lender and when is a good time to do this?

Darren – Great question, you can switch from your current lender and the best time to do this is at your mortgage renewal date. If you have a standard mortgage (no HELOC attached) you can switch and the new lender will cover the costs, plus you get yourself the best possible rate out there. Even if you do have a HELOC, there will be a processing fee involved but this can still be done.

Are you wondering if a switch is good for you? With 47% of all mortgages in Canada coming up for renewal in 2018, this may be a good time for you to check!

 

Regards,

 

Darren Ward

Mortgage Agent

Dominion Lending Centres HT Mortgage Group

Office: (780) 513-6611

Cell: (403) 805-5322

 

Daina Stringer – April 2018 Spring Clean here in Grande Prairie

Daina Stringer 2 Apr

Daina Stringer, our mortgage associate of the week gives us mortgage tips for spring in Grande Prairie:

Jill – Daina springs just around the corner, have you been noticing an increase in people looking for mortgages?

Daina –Yes!! We definitely have. Spring is always a good time to start looking.

Jill – Well any tips for people here in Grande Prairie who are looking to purchase a home this spring? What can they do to make everything go smoothly?

Daina –Save for your down payment, pay down debt and file your taxes to make your financing a smooth process.

Jill – Any big plans for spring this year? Ready to clean all that clutter?

Daina- No big plans since this is a busy time of year for those of us in the mortgage industry, but it is a great time to paint that room, clean up your yard or simply do some Spring cleaning.

Daina Stringer Dominion Lending Centres HT Mortgage Groups associate of the week! She makes moving in the spring easy, so give our office a call today to start your spring move!

Our office: 780-513-6611
Daina’s Cell: 587-343-1612

Chanele discuss’s Fixed vs Variable mortgage rates

Chanele Langevin 26 Mar

This week Chanele Langevin is our broker of the week here in Grande Prairie at the Dominion Lending Centres HT Mortgage Group. Here she is to answer your questions!

Should I go with a Fixed Rate or a Variable Rate on my mortgage?

Well, let’s talk about each type of mortgage in a little more depth.

What are the benefits and drawbacks of a fixed rate mortgage?

Your interest rate and your mortgage payments won’t change until it’s time to renew your mortgage. The security and comfort of knowing your payments won’t change is valuable to many people. That said, you will likely pay a slightly higher premium to enjoy that peace of mind and, in the event of contract disruption, your penalties may be steeper.

What are the benefits and drawbacks of a variable rate mortgage?

The interest rates offered by variable rate mortgages are typically lower; however, there is no guarantee that your rate won’t change. Therefore, you might save money on interest but that’s not a certainty as rates are unpredictable. That said, keep in mind that your interest rate can often be locked at a fixed rate at any time during your term.

Essentially, your choice to lock in a fixed rate or gamble and take the chance to save thousands of dollars in interest is a personal preference. Your main concern should be: how comfortable am I with uncertainty, and what does my budget allows if the rate floats?

And that is why we’re here! We guide and inform our valued customers so you get the best mortgage product for your family’s needs.

Chanele Langevin, Mortgage Agent
Dominion Lending Centres Ht Mortgage Group
101 10001 100 Ave
Grande Prairie, AB
T8V0V2

How Does Downpayment work in Northern Alberta?

Downpayment 1 Aug

This week Jodi Scotton our broker of the week talks about down payment. How much do you need?


DID YOU KNOW

5% down payments are not just for first time home buyers.

This is a question I hear a lot. Everyone wants to know how much money they need to purchase that next house!

If the home your purchasing is going to be your primary residence, you can do 5% down no matter how many times you’ve been in and out of the home market. So when whether your upgrading or downsizing into your new primary residence you can still do a minimum 5% down payment. (On approved credit)

Keep in mind that any mortgage with less than a 20% down payment will be required to pay a default insurance premium. This means that most people can do just 5% down on their next home, but it does cost you a little more. On the other hand, what would the time it takes to save that extra 15% cost you?

Have more questions about down payment? Give me a call or facebook message me!