BC HOME PARTNERSHIP

Down payment loans from the BC provincial government for first time buyers.

Coming this month, January 2017! Get the information you need, find out next steps and have us answer your questions. We can easily take an application and crunch the numbers to help you come up with a plan!

Click here for more info!

Announcing the winner of the Las Vegas Referral Contest!

We are happy to announce the winner of this contest is Sue Marples from Lighthouse Realty in Abbotsford! Congratulations Sue on your trip for 2 to Las Vegas! Thanks everyone for their referrals!

Why You Should Always Use A Licensed Inspector When Buying A Home

Your Mortgage Matters by Vancouver Mortgage Broker Rebecca Awram

Anybody who decides to buy a home makes a long-term commitment. Most home buyers intend to make payments on their mortgage for decades. They also commit to pay for insurance, taxes, and of course, repairs and maintenance. It is important to get information about the condition of the home before settling on a sales price or even deciding to buy.

Sellers should disclose any issues that they know about, but average homeowners may not even be aware of some potential problems with the house that they want to sell. Consciously or unconsciously, they also might be motivated to dismiss other issues as unimportant or unlikely to get noticed. Getting an unbiased and knowledgeable third-party professional protects buyers from accidentally making a bad financial choice.

How Do Licensed Home Inspectors Help Buyers?

A professional home inspection provides a buyer with a good defense against paying too much for a home with damage or defects. A typical inspection costs between $300 and $500. The exact price depends upon the geographical area and size of the home.

If that investment protects a home purchaser from overpaying for a house with a cracked slab or major electrical problems, it will seem like a bargain. Leveling a house can cost thousands of dollars and so can a big rewiring job.

In some cases, major problems may deter buyers. They may hope to move in quickly and would rather just buy another house than have to wait to get repairs made. In other cases, uncovered defects in a house may give the buyer a chance to negotiate terms.

With real estate, almost everything is negotiable. A buyer might demand that major issues get repaired and reinspected at the seller’s expense before closing on the home. If the seller refuses to make repairs, it might also be possible to ask for a lower sales price in exchange for accepting the home as it is.

Is A License Home Inspector Needed For A Newly Built House?

Some buyers may not think they need to spend the money for a licensed home inspector on a new house, however, it is a mistake to think that a house that has just been built to code is entirely free of problems.

Even if the new home comes with a warranty, it is usually better to make sure that all issues get settled before closing. People who invest in a new house want to move in and get comfortable quickly. They do not want to spend time hassling with a warranty company and waiting for repair crews to show up.

In fact, many experienced home buyers actually think an older home is more likely to have the “bugs” worked out of it. A home’s age is not a good way to judge its condition. The important thing to remember is that a professional home inspection can ensure that you know exactly what you are paying for.

Getting A Professional Home Inspection

It is a good idea for the buyer to attend the inspection. Inspectors provide a written report, but they can provide more information in person. It might be a good idea to bring the real estate agent along, too. Prospective buyers might bring a notebook and camera along to record information about any defects the inspector uncovers.

If the inspector does note defects, buyers should be sure to get these issues evaluated in more depth before agreeing to close. For example, if the inspector finds a problem with the heater, bring in an HVAC company to learn how much the problem will cost to repair.

It is fine to shop around a bit to find a competitive price for a home inspection. It is also a good idea to learn about the inspector’s professional credentials and experience. Most established inspectors will also be happy to offer references.

About the Author

JD Stratis is debt-reduction specialist and a successful business operator. He owns a site, WillowbrookCredit.ca which is dedicated to finding solutions for people who are experiencing credit problems.

An Economist of Our Own and the Direction of Rates

Rates are definitely a hot topic these days! DLC now has their own economist, and here’s what she has to say about the direction of rates, both in the short term and later this year. I think I’m going to enjoy hearing and posting her updates, as previously we’ve relied on the chief economists of major banks. Now we have our own!

MBABC Video Creation Contest

I am a member of the mbabc: the mortgage broker association of british columbia, which represents the province’s mortgage industry and has a mandate to support and enhance professionalism and ethical standards.

MBABC Global TV Advertisement:

They hold an annual conference and trade show, and this year’s two day event is the 25th silver anniversary. The theme is cinematic, so many of the events taking place have a film/movie/cinema subject/motif. A contest was offered to brokers to: ” Post a picture or video of you reenacting your favorite inspirational movie quote. Don’t forget to use the MB logo in your video.”

I had a few ideas, thinking about famous movie lines…. and once I thought of the James Bond lines, I couldn’t resist doing a play on words with ‘bond’, which is an important piece of terminology in our industry. Five year fixed mortgage rates are based on the five year bond market and yields, and any discussion of 5 yr rates and their movement inevitably must involve a discussion of 5 yr bonds.

So here is my creation…… with quite a bit of technical assistance from my son.

Referral Appreciation Contest Grand Prize Winner Announced!

Referral Contest PostcardA big congratulations to realtor Marshell Forster with Coldwell Banker Tri-Tel Realty in Maple Ridge, for winning the referral contest, a TRIP FOR TWO TO HAWAII!!! Not surprising, as she had multiple entries, so of course I am glad to see such a strong referral partner take the win. That said, it only takes one entry to win! Chances of winning were one in 88 in this contest. Not bad odds at all…. so keep that in mind when we announce the next contest!

How much mortgage should you and your spouse carry?

DLC Origin Mortgages’ Rebecca Awram was quoted in a story in the Globe and Mail.

HOME OWNERSHIP STRATEGIES
How much mortgage should you and your spouse carry?

Let’s imagine a nice Canadian couple, Karen and Steven.

Their credit rating is good, their jobs steady, household income secure. They’re prime meat for banks hungry to sign them up for a new mortgage.

But when buying a home, how should Karen and Steven determine how much to borrow? How much house should they buy? We asked mortgage brokers for some advice.

Read more

What is a Monoline Lender?

What is a Good Interest Rate on a Second Mortgage in BC? 3.5%!

Rebecca Awram - Vancouver Mortgage Broker

NOW STARTING AT 3.50%!!

A second mortgage is a lien on your property in second position behind your first mortgage. This is considered by most lenders in British Columbia to be a higher risk position, and thus their second mortgage rates are typically priced according to this risk.

second mortgageAs a general statement, you can expect most interest rates on second mortgages to be higher than the interest rates on first mortgages. If the mortgage broker arranging your 2nd mortgage can do it through the same lender as your first mortgage, that can be a good strategy for getting a better rate on your second mortgage.

Alternately, if your loan-to-value is quite low (the ratio of your existing mortgage to the value of the property) and your credit is good, we can arrange a line-of-credit in second position, a ‘second mortgage line of credit’ at the same rates as we would get for a secured line of credit in first position. This is the optimum situation! In these situations, we can often place the 2nd mortgage for prime plus half a percent.

But, sometimes you’re maxed out already, or your credit is bruised. In that situation, a mortgage broker that is experienced in arranging second mortgages will spend a lot of time shopping for the best rate and terms from many private and institutional lenders. This will save you a lot of money on your second mortgage.

It is important to not fall prey to the cute little jingles and songs you hear on radio and television ads for private mortgage lending in the lower mainland. If you go to them for your second mortgage, you will often pay a lot more than if you had your mortgage broker negotiate your interest rate for you. In fact, those same lenders often give mortgage brokers better rates on the same file that was already submitted by a consumer directly!

Rebecca has lots of experience negotiating rates and terms for second mortgages in British Columbia. She’ll take the time and effort required to submit your file to multiple lenders and make sure you get the best rate on a 2nd mortgage. Her office is in Vancouver and she lives in Maple Ridge, so wherever you are in the lower mainland it is convenient for her to come see you for a private and confidential consultation.

Bad Credit Mortgages in British Columbia

Rebecca Awram - Vancouver Mortgage Broker

Good people can have bad credit!  We all face bumps in the road…. there can be many reasons why we have damaged our credit and find out at our local BC bank that we can’t get us the mortgage we had hoped for. Late payments, collection items and disputed accounts are all examples that can lead to the arranging of a mortgage for people with poor credit.

The good news is that even people with bad credit can get a mortgage! The not so good news is that people in this situation will pay a higher interest rate and possibly even a lender fee. So, a poor credit mortgage should not be viewed as a long term strategy. They are a short term strategy.  It is just a step in the rebuilding process, and a good mortgage broker that specializes in poor credit will help you come up with a good plan.

A bad credit mortgage is a means to an end, it is not the end itself. Everyone needs an exit strategy. Working with a BC mortgage broker that specializes in poor credit mortgages can help you get back on track, and find out what steps are necessary to repair the credit and come up with a plan to return you to a conventional mortgage with an A lender. A mortgage for people with damaged credit is best optimized over one, two or three years. If you keep your credit neat and clean over the period of time recommended, you should be able to transition to a mortgage with best market rates.

mortgage application

Often, consumers will hear catchy little songs and jingles on the radio or television from lenders that offer private financing. It can be tempting to contact them yourself and put a bad credit mortgage in place. This is not a good idea. Those same lenders often have better rates and terms available for brokers that call with the exact same client!! That’s because they know that brokers are contacting MANY alternate lenders, and that they must offer their best rate right away or they will lose out to another lender.

Someone with great credit will often receive a similar good rate no matter what bank they go to. It is very, very different for bad credit mortgages. A mortgage broker skilled in placement of mortgages for people with damaged credit makes a big different on the rate, fees and terms that are presented to you. If you’ve already approached a private equity lender yourself, be sure to get a second opinion from your broker. It can save you a lot of money, and working with a professional ensures you come up with a solid plan.

Rebecca is licensed to place mortgages anywhere in British Columbia. Her office is in Vancouver BC and she lives in Maple Ridge, so most areas of the lower mainland are convenient for her to come meet you and discuss your options, privately and confidentially.




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