Home Mortgage Rates

Term Rate
Prime 3.00%
Variable 2.90%
1 Year 2.89%
3 Year 2.69%
4 Year 2.95%
5 Year 3.09%
10 Year 3.89%

Qualifying Rate

Feb 3 5.29%

Current Inflation

Dec 2.3%

5 Year Bond Yield

Feb 3 1.36%

Next Bank of Canada Meeting
Mar 8th, 2012

Special conditions apply
Mortgage Rates subject to change.

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media section

ESN Summer Business Trade Fair

Join us Thursday June 17th with 80 exhibitors and 500 -700 attendees.

DATE:     Thursday, June 17th, 2010.
TIME:      5:30 TO 8:30 PM.
VENUE:  Riverrock Casino, Richmond BC

Over-leveraged Qualification

By Jessi Johnson

There are two types of qualifications in the mortgage industry, overleveraged and non-overleveraged. These night and day qualifications generally sit accurately with two types of mortgage holders; the character who over extends themselves consistently and the individual who is cognizant of his or her financial stability. We don’t generally need to be too concerned with the financially cautious individual however our concerns should be focused on the character that has mastered the art of overleveraging his or her monetary situation.
I like to give people names. That being said, let’s talk about Mr. Credit Maxed and Mr. Money Savvy. A typical year for Mr. Maxed will entail five to ten credit applications to various credit cards and store credit cards, a lower beacon score derived of maxed out cards, a number of embarrassing declines while trying to make a purchase consequent of balances exceeding limits and potentially a mortgage application requesting a home that he can’t afford.

A glance into the life of Mr. Savvy would show a much more pleasant picture. Mr. Savvy only has a few credit cards, all with very low balances. When it comes time to making a rent or mortgage payment, he does this with ease. His credit score and stability could get him anything his income would allow. If he were to apply for a reasonable mortgage, the reflection in his eyes would show an approval. The enjoyment of significantly lower levels of stress is a daily ritual for Mr. Savvy.

As a mortgage broker, it is our responsibility to figure out if our client is a Credit Maxed or Money Savvy. We must be extra cautious with the mortgages we place with our clients. Our goal should be to educate the consumer and not put them in a position for future failure. The best way to do this is by giving them two types of qualifications. The first being a standard (typical) qualification where you show them their max qualification obtained by deducting liabilities from income and calculating in accordance with their down payment. We would call this the Credit Max qualification. Now let’s talk about the Money Savvy qualification. One simple question must be asked, “After reviewing your budget, how much can you honestly afford each month excluding annual property tax or potential strata expenses”? Once you have this number, simply calculate backwards and this is what your client can actually afford, a non-overleveraged mortgage.

Own Your Life,

Jessi Johnson

Article written for the BC Real Estate Convention