What does a mortgage broker do?: Harmony Mortgage Group, helping you in your home b...

What does a mortgage broker do?: Harmony Mortgage Group, helping you in your home b...: As Chilliwack's leaders in mortgage lending, Harmony Mortgage Group uses their experience in the lending community to search out th...

Harmony Mortgage Group, helping you in your home buying search...

As Chilliwack's leaders in mortgage lending, Harmony Mortgage Group uses their experience in the lending community to search out the best mortgage product to suit your needs.  

As a mortgage broker we will help you first qualify, then hold a rate for you while you shop.  This is why making a pre approval with your mortgage broker at Harmony Mortgage Group is the most important first step in buying a home.

Starting Your Search

Here are some ways to begin looking for your new home:

• Word-of-mouth
  Tell everyone you know that you are looking for a new home. Surprising things sometimes happen. For example, you might hear about a home that is just becoming available on the market.
• Newspapers and real estate magazines
  Check the new homes section in daily newspapers. Look for the free real estate magazines available at newsstands, convenience stores and other outlets. These publications are free and give pictures and short descriptions of homes for sale.
• The Internet
  Check out real estate websites, such as realtor.ca. These websites give information and pictures of a wide range of properties. Most sites let you search by location, price, number of bedrooms, and other features.
• “For Sale” signs
  Drive, bike or walk around a neighborhood that interests you and look for “For Sale” signs. This is a good way to find homes that are being sold by the owner and are not listed with an agent.
• Visit new development sites
  If you are looking for a newly built home, you can see available models and get information from builders.
• Work with a realtor
  For most buyers, a realtor is key to finding the right home.

Useful Tips for Your Search

• Keep records
  Whether you have a realtor or are looking by yourself, visit lots of homes before choosing one. Some things to compare are the home’s energy rating, utility costs, property taxes and major repairs. These will affect your monthly housing expenses. You can ask to see copies of utility and other bills. Use the CMHC Home Hunting Comparison Worksheet to make sure you get all the information you need to compare homes.
• Check out the property’s current financing
  If the existing mortgage on the home is favorable, it may be possible to take it over from the vendor. It may even be possible to get a vendor take back mortgage, to help close the deal.
• Think twice
  Even if a home seems perfect, go back and take a closer, more critical look at it. Visit it on different days and different times of the day. Chat with the neighbours. Look deeper — don’t be distracted by attractive surface details.
• Energy Rating
  Some houses and new homes in Canada have an Energy Rating that describes the energy efficiency of the home. An energy-rated home usually has a sticker with the rating on the electrical panel. The energy rating is on a 0 – 100 scale. The higher the rating, the more energy-efficient is the home, and the less it costs to operate.
• CMHC statistics and analysis
  CMHC has the latest statistical information and analysis of housing trends. Our Market Analysis Center tracks information for local, provincial and national markets. 

Making an Offer to Purchase

After you have found the home you want to buy, you need to give the vendor an Offer to Purchase (sometimes called an Agreement of Purchase and Sale). It is very helpful to work with a realtor (and/or a lawyer/notary) to prepare your offer. The Offer to Purchase is a legal document and should be carefully prepared.

These items are typically included:

• Names
  Your legal name, the name of the vendor and the legal civic address of the property.
• Price
  The price you are offering to pay.
• Things included
  Any items in or around the home that you think are included in the sale should be specifically stated in your offer. Some examples might be window coverings and appliances.
• Amount of your deposit
• The closing day
  The closing day is the date you take possession of the home. It is usually 30 – 60 days after the date of agreement. But, it can be 90 days, or even longer.
• Request for a current land survey of the property
• Date the offer expires
  After this date the offer becomes null and void — that means it’s no longer valid.
• Other conditions
  Other conditions may include a satisfactory home inspection report, a property appraisal, and lender approval of mortgage financing. This means that the contract will become final only when the conditions are met.

What Happens After You Make an Offer to Purchase?

Imagine that your realtor has helped you prepare an Offer to Purchase. This offer includes all the details of the sale. To be extra cautious (since you know an Offer to Purchase is legally binding) ask your lawyer to look at it before showing it to the vendor. The realtor presents the offer to the vendor. What can you expect to happen next? There are three possible responses.

• Response 1
  The vendor accepts your offer. The deal is concluded and you move on to the next steps in the buying process.
• Response 2
  The vendor makes a counter-offer. The counter-offer might ask for a higher price, or different terms. You can sign the offer back to the vendor, offering a higher price than your original offer, but lower than the vendor’s counter-offer. If the vender accepts this counter-offer, the deal is concluded.
• Response 3
  The vendor makes a counter-offer, asking for a higher price or different terms. If a counter-offer is returned to you at a higher price, ensure that you know exactly how much you can afford before you start negotiating. You don’t want to get caught up in the heat of the moment with costs you can’t afford. You reject the counter-offer because the price is still too high, or you can’t agree to the conditions. The sale doesn’t go through, and your deposit is returned.

A Homeowner’s Experience

Getting a Mortgage

Once your Offer to Purchase has been accepted, go to see your Chilliwack Mortgage broker, Harmony Mortgage Group.  At Harmony Mortgage Group we will verify (and update, if necessary) your financial information and put together what’s needed to complete the mortgage application.  Your Chilliwack Mortgage Broker, Harmony Mortgage Group will help you decide between the various types of mortgages, terms, interest rates, amortization periods and, payment schedules that are available.

Depending on your down payment, you may have a conventional mortgage or a high-ratio mortgage.

Types of Mortgages

Conventional Mortgage

A conventional mortgage is a mortgage loan that is equal to, or less than, 80% of the lending value of the property. The lending value is the property’s purchase price or market value — whichever is less. For a conventional mortgage, the down payment is at least 20% of the purchase price or market value.

High-ratio Mortgage

If your down payment is less than 20% of the home price, you will typically need a high-ratio mortgage. A high-ratio mortgage usually requires mortgage loan insurance. CMHC is a major provider of mortgage loan insurance, however there are also 2 other insurers, Canada Guaratnee and Genworth.  Depending on your specific needs the lender your Chilliwack Mortgage brokers at Harmony Mortgage Group will chose the insurer that fits your needs.

Mortgage Term

At Harmony Mortgage Group, as Chilliwacks leading Mortgage brokers we will tell you about the term options for the mortgage. The term is the length of time that the mortgage contract conditions, including interest rate, will be fixed. The term can be from six months up to ten years. A longer term (for example, five years) lets you plan ahead. It also protects you from interest rate increases. Think carefully about the term that you want, and don’t be afraid to ask your lender to figure out the differences between a one, two, five-year (or longer) term mortgage.

Mortgage Interest Rates

Mortgage interest rates are fixed, variable or adjustable.

Fixed Mortgage Interest Rate

A fixed mortgage interest rate is a locked-in rate that will not increase for the term of the mortgage.

Variable Mortgage Interest Rate

A variable rate fluctuates based on market conditions. The mortgage payment remains unchanged.

Adjustable Mortgage Interest Rate

With an adjustable rate, both the interest rate and the mortgage payment vary, based on market conditions.

Open or Closed Mortgage

Closed Mortgage

A closed mortgage cannot be paid off, in whole or in part, before the end of its term. With a closed mortgage you must make only your monthly payments — you cannot pay more than the agreed payment. A closed mortgage is a good choice if you’d like to have a fixed monthly payment. With it you can carefully plan your monthly expenses. But, a closed mortgage is not flexible. There are often penalties, or restrictive conditions, if you want to pay an additional amount. A closed mortgage may be a poor choice if you decide to move before the end of the term, or if you want to benefit from a decrease of interest rates.

Open Mortgage

An open mortgage is flexible. That means that you can usually pay off part of it, or the entire amount at any time without penalty. An open mortgage can be a good choice if you plan to sell your home in the near future. It can also be a good choice if you want to pay off a large sum of your mortgage loan. Most lenders let you convert an open mortgage to a closed mortgage at any time, although you may have to pay a small fee.

Amortization

Amortization is the length of time the entire mortgage debt will be repaid. Many mortgages are amortized over 25 years, but longer periods are available. The longer the amortization, the lower your scheduled mortgage payments, but the more interest you pay in the long run. If each mortgage term is five years, and the mortgage is amortized over 20 years, you will have to renegotiate the mortgage four times (every five years).

Payment Schedule

A mortgage loan is repaid in regular payments — monthly, biweekly or weekly. More frequent payment schedules (for example weekly) can save some interest costs by reducing the outstanding principal balance more quickly. The more payments you make in a year, the lower the overall interest you have to pay on your mortgage.

Closing Day

Closing day is the day when you finally take legal possession and get to call the house your home. The final signing usually happens at the lawyer or notary’s office.

These are the things that happen on closing day:

• The lender chosen by your mortgage broker will give the mortgage money to your lawyer/notary.
• You must give the down payment (minus the deposit) to your lawyer/notary. You must also give the remaining closing costs.
• Your lawyer/notary

·          

• Pays the vendor
• Registers the home in your name
• Gives you the deed and the keys to your new home

Moving

Hiring a Mover

When planning your move, friends or relatives may be able to recommend a professional moving company. Don’t forget to ask the mover for references. Ask the mover for an estimate and outline of fees (do they charge a flat rate or hourly fee?). Once you’ve chosen a mover, ask them to come to your home to see what will be moved in case the estimate needs to be changed.

You’ll want to ensure that your belongings are insured during the move. Your home or property insurance may cover goods in transit. Call your broker or insurance company to be sure. Ask if you are fully covered. Many moving companies offer additional insurance coverage. Be aware that professional movers are not responsible for items such as jewellery, money, or important papers. Move these yourself to keep them safe.

If you decide to do your own packing, keep in mind that you will need the proper materials, and that packing can take up a lot of time.

Moving Day

On moving day, go through the house with the van supervisor and give him (or her) any special instructions. The supervisor will note the condition of your goods on an inventory list. Go through the house with the supervisor to make sure the list is complete and accurate. When the van arrives at your new home, mark off the items on the mover’s list as they are unloaded. If you paid for the movers to unpack boxes and remove packing materials, remember that they will not put dishes or linens into cupboards.

Moving day is almost always tiring. But, planning ahead will make the transition as smooth as possible.

Moving Costs

The amount you spend depends on your decisions about many things. Here are some to think about:

• Do you want to hire professional movers?
• If so, will it be a large company or a smaller local moving company?
• Will you need to buy insurance to protect your items in transit?
• If you plan to move yourself, will you rent a vehicle?
• Will your current auto or home insurance policy cover your items during the move?
• Will you have to pay utility companies a fee to connect their services in your new home? Are there other utility charges (such as a deposit)?

Post-Closing Costs

Changing the Locks

When you move into your new home you’ll want to change the exterior door locks for security. After all, you want only the people you choose to have the key to your new home. You can change the locks yourself or call a locksmith to do the job.

Cleaning

Both your old home and your new home should be given a thorough cleaning at moving time. Whether you’re buying cleaning supplies and doing it yourself, or hiring someone to clean for you, the costs can really add up. Plan for this expense.

Decorating

You might want to re-paint, replace some light fixtures, refinish the floor, re-carpet, or do any number of other decorating tasks. Plan your budget, and consider postponing some projects for a period of time.

Appliances

If your offer to purchase didn’t include appliances, and if you don’t have your own, you will have to buy them when you move into your new home. Some appliances might have installation charges.

Tools and Equipment

When you own your own home, you can no longer call the landlord to do repairs. You’ll need to own some basic hand tools and possibly some gardening and snow clearing equipment.

Get a fast pre approval with no maditory fields, same day, secure and direct on our Apply Now page on our website.  You don't even need to leave your home to know how much you will qualify to buy for.  

Harmonymortgage.ca

harmonymortgage@gmail.com

1-888-755-1126

Buy a lived in house, and still get to pick your specifics?? Is that possible??

Wouldn't you love to buy an older home but be able to pick your own kitchen and fixtures and even the paint color on the walls???  Buying new is great because you get to pick your own colors and specifics.   But we know a way that you could save the cost of buying new and still have the option to make it what you want........  It's called Purchase plus improvements and it is quickly becoming an option to help clients get exactly what they want out of a used property.

How can purchase plus improvements help you?  Whether you are buying a home for yourself, as an investment, or you are a realtor and are looking for creative ways to help sell that property.  The Purchase plus improvements program can help.  It is often overlooked as an option, however if you are a buyer or a realtor this is a tool you can add to your belt.

Many people are able to look past the visible eye sores and see a final product that will be a worthy investment.  How it works is as simple as it's title.  You are buying the home and mortgaging the improvements in with the purchase price. 

It is as simple as getting estimates for what you would like to do, submitting to the lender for review then once the improvements are complete you receive a cheque from the notary in the amount of the improvements.  Some lenders will even allow you to do the improvements yourself and receive the estimated $$$ for the improvements.  This can be a significant benefit for someone in the industry or simply someone who is handy on the reno scene.

This is not for everyone when doing a large scale reno however some lenders allow what's called sweat equity, or "paying yourself to do the work".  This could help those of you who are motivated and trained to do some or all of the work yourself.  And in turn helping to pay the cost of the improvements. 

We are here to help you find solutions like these to either help sell your current home or to make the home you are interested in but just needs some tweaking exactly what you want.

Tammy O'Callaghan

Carie Pool 

1-888-755-1126
Harmonymortgage@gmail.com
HarmonyMortgage.ca

Buy with 5% down payment

What is all this talk about so many Mortgage changes????  Why are people under the perception that you need more than 5% down on buying a house?  The new mortgage rules had little to do with down payments in fact for the average home buyer the down payment rules have not changed at all.

When March 2012 ushered in a pile of new mortgage rules many people freaked out about qualifying.  Yes there were changes that affected the ability to qualify for a mortgage, like the change from a 30 year max amortization to 25 years amortization, resulting in a higher mortgage payment. 

As mortgage brokers we are always looking for ways to better educate and advise our clients.  One of the things we noticed in talking with our clients was the lack of education about down payments.  Many of our clients have been lead to believe that they will no longer qualify with the new rules in place.  Reality is we help many clients who have been told they will not qualify or have helped them qualify for a higher mortgage.  We take into consideration all of the vairables and options out there and because we work independantly we are able to negotiate the rates with over 40 different lenders.

Now to talk down payments, since that is what this blog is supposed to be about.....  The truth is you CAN STILL BUY WITH 5% DOWN!!  Yes this is true, and NO YOU DO NOT NEED TO BE A FIRST TIME HOME BUYER.  This can be the 5th home you have purchased as an owner occupied unit and you can still put as little as 5% down.  Yes, it is true, you will be paying a premium to a mortgage insurerer like CMHC, Genworth or Canada Guarantee however with rates as low as they are currently, it doesn't affect the payment substancially.  What the mortgage insurers do for you is allow you to put less than the lender requirement of 20% down by insuring the extra down payment funds, they do this by charging you a premium over the life of the mortgage...

So basically don't count yourself out of the market, rates are the best they have ever been, which also helps with qualifying.

Harmony Mortgage Group is dedicated to keeping up with the latest regulations, policies and programs offered by the different lenders.  Because of this we are able to offer our clients the best service and options that are out there on an ongoing basis.  We do the negotiations and leg work for you.

1-888-755-1126
HarmonyMortgage.ca
HarmonyMortgage@gmail.com

  

Do you have a purple bathroom, shag carpet and out of date laminate flooring?????

With the new lending guidlines tightening it is increasingly important to get the right advice when buying, refinancing, or making a home purchase.  When it comes to refinancing it seems that very few clients have the equity in their home to allow for a home renovation budget.

What does it mean to have "equity" in your home??? That is a great question.... What it meansthe difference in what you owe on your mortgage to date and what the market value of your home today.  If you are one of the lucky ones who bought when the market was low and the values have gone up, you may already have equity in your home even if you haven't been making payments for very long.  However, for people who bought in the last couple years this option is almost obsolete.

We have found the solution to this problem with our "Refiance Plus Improvements".  Once you have your renovation plans costed out, we can use the as if completed value of your house, to determine how much equity you have access to. Whether you are looking to enhance to sell or for your own comfort and pleasure this option gives you access to more $$$$ than a regular refinance would.  In a buyers market sellers need all the advantages they can have over their competition.

Do you have a purple bathroom, shag carpet and out of date laminate flooring???  With a refinance plus improvements you can update these eye sores and create a completely sellable modern home.  Some people just can't see past the things they can change, or just lack the enthusiasm or creativity to make the changes after a purchase.  You will be able to fall under the government of Canada's new guidlines on refiancing only up to 80%, and you will have increased the value of your home to either live in yourself or sell in a very lively market.

We would love to place you with a lender who is offering this product.  Just give us a call or send us a PM and we will be happy to set you up.

Harmonymortgage.ca
harmonyMortgage@gmail.com
1-888-755-1126

Separating???

Check out our Spousal Buyout Program!

So many thoughts go through your mind at this time, the last thing you want to think about is how you can financially make it through this difficult time.

 

Let us shoulder the burden for you. Our partnership with leading lenders can help facilitate a spousal buyout program.  This is just like buying for the first time.  Best of all with the Spousal buyout program you will be able to roll in your current debt.  This can help relieve a lot of stress and allow an easier transition in to starting a new life.  We both understand this life change.... we have been there too, and have the best empathic advise.

 Harmony Mortgage Professionals are not your everyday average mortgage brokers! 

Give us a call today 1-888-755-1126

$10,000 First Time Homebuyer BONUS! time is running out!!

$10,000 First Time Homebuyer BONUS!
Effective February 21, 2012, to March 31, 2013, the bonus is a one-time refundable personal
income tax credit worth up to $10,000. Certain restrictions and qualifications do apply - please click the 2 links below to find out more information. And, as always, if you have ANY questions or concerns, please do not hesitate to contact us!

Federal Grant :

·         This is a $5,000 income tax credit claimed when filing your annual personal tax return

·         The $5,000 is applied as a tax credit at the basic personal federal tax rate of 15%

·         Accordingly the effective value of the grant is $750

·         The $750 value is applied regardless of the income of the buyer

·         This grant is available to first time buyers, but the home does not need to be brand new

More details on the Federal Grant can be found HERE (CRA Website)
BC Grant :

·         The BC Grant is a Bonus for first time buyers in BC

·         The Bonus is 5% of the purchase price, subject to a maximum of $10,000

·         The home must be a new home to which HST is applied

·         The Bonus is scaled back based on income of the purchasers

·         The purchaser can apply immediately after completion of the purchase via an application form that will soon be available on the BC Government web site

More information on the BC Bonus is available HERE (BC Gov PDF Document)

Apply online

HarmonyMortgage@gmail.com

Harmonymortgage.ca

toll free 1-888-755-1126

 

Tammy O'Callaghan 604-845-0559

Carie Pool 604-703-8748