• March sales in Greater Vancouver were the second lowest total for the month since 2002
• From what I hear, April isn’t much better
• Last month’s new listing total was 4.5 per cent above the 10-year average for listings in Greater Vancouver for March
• There are a lot of options on the market right now

Source: REBGV

Your life is controlled by your credit score

What is the most important thing you are ever going to purchase in your life time? A home. So who cares what Equifax considers a good credit score, it’s what the lenders think that counts. Your beacon score aka credit score ranges from 300 (low) to 900 (high). There are two governing bodies who monitor your credit scores. The first is called Equifax and the second is Transunion. We are going to focus on Equifax as the majority of lenders use Equifax over Transunion.

According to Equifax, 700 is considered nothing special but by mortgage lending standards, this will get you pretty much anything you want. What is the minimum requirement for a mortgage with great rates? 620 – 650 (through a mortgage broker) depending on the mortgage product you require. Most people fall into the 750 – 799 range (according to Equifax) which is pretty high if you ask me. Here’s where it gets interesting, a credit score of 850 can mean nothing!

Without an established history of payments and at least two trade lines (line of credit, student loan, credit card, car payment, etc), a high credit score can mean nothing. It takes time to establish a good credit score so start today if you haven’t already.

Your Equifax credit report is a compilation of information about you and your credit history that has been reported to Equifax by others, mostly by those who granted you credit. Your credit score, on the other hand, is a number calculated using the information in your credit report.

A credit score is a statistical formula that translates personal information from your credit report and other sources into a three-digit score. For example, when you fill out a loan application, pieces of information from the application along with information from your credit report will be used to compute a score that indicates to the lender the statistical probability that you will become delinquent on the loan.

There is no quick fix for removing past aspects of your credit history that may be negatively affecting your credit score.

Here are some tips to keeping a good credit score:

• Never go over your limit and try to keep your balance below 75% of the limit
• Always pay your bills on time
• Avoid applying for credit unless you have a genuine need for a new account. Minimize your inquiries

What are the most common factors that can negatively affect a credit score?

• Delinquency
• Public record or collection field
• Time since delinquency is too recent or unknown
• Level of delinquency on accounts is too high
• Number of accounts with delinquency is too high
• Amount owed too high on accounts
• Ratio of balances to credit limits on revolving accounts is too high
• Length of time accounts has been established is too short
• Too many accounts with balances

Will inaccurate information in my credit report affect my  credit score? It certainly can depending on what is reported. If you want to correct inaccurate information on your Equifax report, download the Consumer Credit Report Update Form, which is used to correct inaccuracies. You can fax the completed form to (514) 355-8502.

Source: http://ownyourlife.ca/mortgages-marketing/your-life-is-controlled-by-your-credit-score.html

According to Equifax, 700 is considered nothing special but by mortgage lending standards, this will get you pretty much anything you want. What is the minimum requirement for a mortgage with great rates? 620 – 650 (through a mortgage broker) depending on the mortgage product you require. Most people fall into the 750 – 799 range (according to Equifax) which is pretty high if you ask me. Here’s where it gets interesting, a credit score of 850 can mean nothing!
Read More

Without an established history of payments and at least two trade lines (line of credit, student loan, credit card, car payment, etc), a high credit score can mean nothing. It takes time to establish a good credit score so start today if you haven’t already.

Your Equifax credit report is a compilation of information about you and your credit history that has been reported to Equifax by others, mostly by those who granted you credit. Your credit score, on the other hand, is a number calculated using the information in your credit report.

A credit score is a statistical formula that translates personal information from your credit report and other sources into a three-digit score. For example, when you fill out a loan application, pieces of information from the application along with information from your credit report will be used to compute a score that indicates to the lender the statistical probability that you will become delinquent on the loan.

There is no quick fix for removing past aspects of your credit history that may be negatively affecting your credit score.

Here are some tips to keeping a good credit score:

– Never go over your limit and try to keep your balance below 75% of the limit
– Always pay your bills on time
– Avoid applying for credit unless you have a genuine need for a new account. Minimize your inquiries

What are the most common factors that can negatively affect a credit score?

– Delinquency
– Public record or collection field
– Time since delinquency is too recent or unknown
– Level of delinquency on accounts is too high
– Number of accounts with delinquency is too high
– Amount owed too high on accounts
– Ratio of balances to credit limits on revolving accounts is too high
– Length of time accounts has been established is too short
– Too many accounts with balances

Will inaccurate information in my credit report affect my credit score? It certainly can depending on what is reported. If you want to correct inaccurate information on your Equifax report, download the Consumer Credit Report Update Form, which is used to correct inaccuracies. You can fax the completed form to (514) 355-8502.

Typically as the mortgage industry grows and CMHC simply requests for more money from our deep-pocketed government (usually every 3-5 years) and gets it but not this time. Parliament appears to be holding out longer than usual and this is not good for anyone wanting a mortgage or anyone wanting to help you get a mortgage.The federal government has earned over 14 billion from CMHC in the past decade so you can imagine they are certainly considering the increase.

Bottom line, this could be a huge problem and potential cripple the mortgage by minimizing lenders industry if not resolved. You will get more details soon once I hear more from the government.

Mortgage Broker of the Year
Best Customer Service
Best Internet Presence
Best Branding
Mortgage Brokerage of the Year
Best Newcomer (Brokerage Firm)

We have been getting a lot of phone call inquires from people who noticed us on Oprah’s reality show Million Dollar Neighbourhood asking to know their “5 year number”. If you are curious, just ask at 604 628 5040. The show was a huge success and already picked up season two with North American syndication!

Annual Reviews are in full force and keeping our office very busy with number crunching. It is very important that you complete these to ensure your mortgage is optimized at all times. Curious what the heck an Annual Review is? CLICK HERE to read a quick explanation.

Solution to Vancouver’s homeless problem and the bike lanes: So Vancouver is supposed to be the nicest place to live in the world. It is a beautiful city, don’t get me wrong but we have a catastrophic issue that continues to go uncorrected. Our re-elected mayor Gregor Robertson used the tactic in his campaign stating that he will fix this issue, Vancouver’s homeless problem but we aren’t seeing results. READ MORE

Highlights of the 2012 federal budget: I agree that politics can be dull at times but we must pay attention to key meetings such as the Federal Budget. To save you some time, I have highlighted the key points for you… READ MORE

50% return on investment: I am guessing that a 50% ROI (return on investment) caught your eye. If it didn’t, go to the doctor because there is something wrong with you! I have a number of clients currently investing in a few key areas right now and really think there are some hidden gems for investment. When buying real estate for investment, there are many factors to take into account… READ MORE

New HST rules and the reality of it all: I will review the new HST rules with you shortly but would like to point out the disturbing reality of this tax. My wife and I recently purchased a new townhouse and were shocked when I ran the “real” numbers. What I mean is, the realistic cost of income required to pay this tax on top of paying the tax in the first place. How much does that “new” home need to increase in value before you break even because of the tax’s? The answer is about 23%… READ MORE

What is the inflation hedge mortgage strategy? The inflation hedge mortgage strategy helps find solutions to problems problems you may not even know that you have. It can also save you ten’s of thousands of dollars in unnecessary interest expense… READ MORE

This months (from March referrals) winner for the trip for two to Las Vegas is Kyle & Sierra Deverill! Want to win a trip? CLICK HERE for details.

In Defense of HST: A recent post on this blog got me thinking about the H.S.T. again. I am a proponent of it and I wanted to explain why. It was brought down by naysayers who were louder and had catchier buzzwords than folks like myself. I am sad to say that I did nothing against this other than complain to my like-minded friends. So even though the decision has long since been made I thought I should voice my thoughts on the matter… READ MORE

Have you seen our new professionally recorded video series yet? If not, I invite you to check out www.jessijohnson.ca and let me know what you think. I will be releasing the 20 free videos to this entire database later this week. I put a ton of time into these videos and would appreciate it if you share them with your friends, family and associates.

Getting a mortgage is a rite of passage for the aspiring homeowner. With banks offering record low interest rates and a huge range of competing mortgage products, understanding the details of the contract is critical.

Sarah Sangster signed a new mortgage last week. The musician and graphic designer just purchased a small condo in East Vancouver. It’s her first purchase in the Vancouver market, though she has owned two other houses in Winnipeg.

On her third run through the process, Sangster was clear about what she was looking for from her bank when she went to them for a mortgage.

“My main goal was to end up with payments that fit my means with the flexibility to pay more when I’m able without penalty,” she says.

It’s the triple crown of the mortgage seeker.

“At a certain level the contracts are all the same,” says Khushhal Bains, a real estate lawyer with Vancouver law firm Bell Alliance. “What’s different is the amount of money, the interest rate and the pre-payment options.”

Like any contract, a mortgage comes with rights and responsibilities for both parties involved. The terms of the mortgage commits the bank to provide the money on the agreed upon date at a specified interest rate, and with certain payment options.

Consumer protection legislation also requires the banks to provide full disclosure about how much money they are going to make on the mortgage, pre-payment options, and the penalties for breaking the contract.

All of the information that a buyer needs will be in the contract, so it’s important for the buyer to persevere through the legal jargon and fine print to make sure that they really understand what they are signing.

“I’m a creative [type], so I tend to glaze over when certain banking terms and numbers are thrown around,” says Sangster. “I just made sure to stay focused and ask a lot of questions of the professionals who were working for me.”

That’s music to the ears of Jessi Johnson, president and CEO of Jessi Johnson Mortgage Brokers. The Vancouver-based broker has made it a personal mission and business to help buyers make better-informed mortgage decisions.

“We’re concerned at the lack of concern that many people have about mortgages,” says Johnson. “Where most people fail is in not asking enough questions, or not picking someone with enough experience to know what they should be asking.”

Johnson advises people to put less emphasis on getting the lowest interest rate, and more on the terms and payment options that suit their needs.

“A lot of consumers are not paying attention to what they are getting themselves signed up for,” says Johnson. “They get drawn in by a great rate but they get locked in with minimal prepayment options, limited amortization options, or no secondary financing.”

For Sangster, working with a team to find a home and mortgage to suit her needs made the process a lot easier.

“My realtor was invaluable for the purchasing process, but my mortgage specialist was the most helpful as far as explaining the details of the mortgage itself,” says Sangster. “Developing a good relationship with both, and introducing them to each other fairly early on made for a smooth process.”

Once the mortgage is signed, the responsibility shifts to the homeowner. Signing the contract is a personal promise to pay the loan back with interest, as well as property taxes and strata fees. Embedded in the general terms are commitments not to destroy the property, undertake major renovations or leave the space vacant or unused without notifying the bank.

Some mortgages may offer terms to help homeowners with unforeseen costs or major renovations.

“Because this was my first condo purchase, my biggest worry was that I would end up with a massive repair bill from my strata one day,” says Sangster. “I asked my mortgage specialist what my options would be if any large expenses were to come up, and she showed me the details of an option that allows you to withdraw from your mortgage up to the amount you’ve paid into it.”

The part of the mortgage that many buyers don’t consider is the end. The most common way of breaking a mortgage is to sell the house.

“Sometimes people forget that selling their property is an example of breaking their mortgage,” says Bains. “Before you decide to sell your place, call the bank and find out what the penalty will be.”

According to Johnson, the average mortgage lasts just over three years, but many people sign for a five-year term. The penalties for breaking a mortgage early can add up, so Johnson encourages buyers to think about it in broader terms before they make the commitment.

“What are your intentions for the property? If only planning to stay for two years, why get stuck with a five-year term?” he asks. “Be careful what you get yourself into.”

Read more: http://www.vancouversun.com/business/mortgages/Before+sign+contract+take+note+more+details+than+your+interest+rate/6345058/story.html#ixzz1rwdRv5ZY

Brokers relying on investor clients to shore up the bottom line are now watching as key lender decisions erode that once lucrative business.

“We’re into a scenario where not only do lenders charge more for investment properties, they have caps on how many investment properties a client can own or they just cut off investment properties all together,” Jessi Johnson of the Verico Jessi Johnson Mortgage Team told MortgageBrokerNews.

“The deals are still there, what’s happening is that it takes longer to get them done. You’re getting turned down consistently by lenders who would have normally done these transactions before or there are circumstances where you simply can’t get them done and you have to go commercial.”

His Vancouver brokerage is grappling with several client files where investors with large portfolios are struggling even to renew mortgages.

“I’m finding clients sometimes have to go back to their existing lender without the flexibility and power to go to a new lender to negotiate rates because they’re stuck,” said Johnson, a high volume broker in a market marked by its concentration of condo and other rental properties.

Other mortgage brokers also report difficulties, many stemming from CMHC insurance changes, meaning some investors have to come up with a 20 per cent deposit, and from changes to what percentage of rental income lenders will allow clients to use as an offset.

The government`s decision not to raise the CMHC`s cap on portfolio insurance for lenders last month has sped up the banks’ retreat from rental mortgages.

Still, Johnson can understand their motivation, suggesting borrowers will have to adjust their expectations.

Those who were downplaying their income to reduce their taxes were likely to be pinged by stricter lending conditions.

“This is a simple case of risk assessment,” he said. “I think moving forward borrowers need to understand that if they have $50,000 on their notice of assessment and they own 10 rental properties, it’s not going to be easy to get them a mortgage.”

I am excited to start 2012 off with positive statistics from another year in real estate! The 2011 Greater Vancouver housing market began with heightened demand in regional hot spots and concluded with greater balance between seller supply and buyer demand.

Real Estate Stats:

• Residential property sales of detached, attached and apartment properties reached 32,390 in 2011
• A 5.9 per cent increase from the 30,595 sales recorded in 2010
• The number of residential properties listed for sale increased 2.7 per cent in 2011 to 59,549
• Compared to the 58,009 properties listed in 2010
• Last year’s listing total was 11.1 per cent above the ten-year average
• “It was a relatively balanced year for the real estate market in Greater Vancouver with listing totals slightly above historical norms and sale numbers slightly below,” Rosario Setticasi, REBGV president said.
• We are still in a buyers market so enjoy it while it lasts!

Source: REBGV

The Buying Process

Whether you are a first home buyer or veteran purchaser, it never hurts to have a refresher of the process. The following simplified steps outline what you should expect during the duration of your purchase of real estate.

Select your mortgage broker √

• Complete the online application
• Create a budget of how much “you” can comfortably afford for your mortgage payment
• Get pre-approved and obtain a rate hold to protect yourself
• Review the process with your mortgage broker
• Provide requested documentation for review

Obtain a trusted real estate agent √

• I am looking forward to working with you!

Home Shopping

• Take your time and know what you are looking for
• Get your offer accepted

Subject removal stage (most important stage)

>>Financing

• Your mortgage broker will give you the go-ahead when this is approved

>>Inspection

• This shows the quality of the home you are buying

>>Appraisal

• This proves the value of the home you are buying
  Book Suggestion

Time before completion

• Prepare for the move
• Make decision on mortgage or life insurance
• The lender will send the final mortgage instructions to your solicitor

Instruction process

• The solicitor will contact you to arrange a time to sign final docs
• We will provide a trusted solicitor if you need one

Welcome home!

• You are no longer paying someone else’s mortgage!
• You receive the keys to your new home

Make sure to review these steps to ensure you are aware of what is going on and are properly prepared. Always have your documents approved by your broker prior to writing any offers.

Source: www.ownyourlife.ca

I am excited to start 2012 off with positive statistics from another year in real estate! The 2011 Greater Vancouver housing market began with heightened demand in regional hot spots and concluded with greater balance between seller supply and buyer demand.

Real Estate Stats:

• Residential property sales of detached, attached and apartment properties reached 32,390 in 2011
• A 5.9 per cent increase from the 30,595 sales recorded in 2010
• The number of residential properties listed for sale increased 2.7 per cent in 2011 to 59,549
• Compared to the 58,009 properties listed in 2010
• Last year’s listing total was 11.1 per cent above the ten-year average
• “It was a relatively balanced year for the real estate market in Greater Vancouver with listing totals slightly above historical norms and sale numbers slightly below,” Rosario Setticasi, REBGV president said.
• We are still in a buyers market so enjoy it while it lasts!

Source: REBGV

The Buying Process

Whether you are a first home buyer or veteran purchaser, it never hurts to have a refresher of the process. The following simplified steps outline what you should expect during the duration of your purchase of real estate.

Select your mortgage broker √

• Complete the online application
• Create a budget of how much “you” can comfortably afford for your mortgage payment
• Get pre-approved and obtain a rate hold to protect yourself
• Review the process with your mortgage broker
• Provide requested documentation for review

Obtain a trusted real estate agent √

• I am looking forward to working with you!

Home Shopping

• Take your time and know what you are looking for
• Get your offer accepted

Subject removal stage (most important stage)

>>Financing

• Your mortgage broker will give you the go-ahead when this is approved

>>Inspection

• This shows the quality of the home you are buying

>>Appraisal

• This proves the value of the home you are buying
  Book Suggestion

Time before completion

• Prepare for the move
• Make decision on mortgage or life insurance
• The lender will send the final mortgage instructions to your solicitor

Instruction process

• The solicitor will contact you to arrange a time to sign final docs
• We will provide a trusted solicitor if you need one

Welcome home!

• You are no longer paying someone else’s mortgage!
• You receive the keys to your new home

Make sure to review these steps to ensure you are aware of what is going on and are properly prepared. Always have your documents approved by your broker prior to writing any offers.

Source: www.ownyourlife.ca

As you can tell by the fact that I am sending this so late in the month, it’s been a busy February. First off, I would like to give a sincere thank you to everyone who nominated me for the Canadian Mortgage Awards. I find out shortly if I made it to the final stage in Toronto this Spring.

Have you seen our new professionally recorded video series yet? If not, I invite you to check out www.jessijohnson.ca and let me know what you think. I will be releasing the 20 free videos to this entire database later this week. I put a ton of time into these videos and would appreciate it if you share them with your friends, family and associates.

New HST rules: CLICK HERE for details on the new HST rules from February 17th.

This Sunday was week 6 on Oprah’s reality show Million Dollar Neighbourhood and my part appears on week 7 & 8. The show airs throughout the week on OWN. CLICK HERE to watch the most recent episode. Believe it or not but it’s already picked up American syndication! The concept of this show has never been done before and it couldn’t come at a better time. I am honored to have been selected as the lead mortgage broker for the show, I just hope that don’t cut me all together!

Annual Reviews are in full force and keeping our office very busy with number crunching. It is very important that you complete these to ensure your mortgage is optimized at all times. Curious what the heck an Annual Review is? CLICK HERE to read a quick explanation.

Are you curious what our head office looks like from the inside? Where everything “happens”… CLICK HERE to see some pictures on our corporate Facebook page.

This months (from January referrals) winner for the trip for two to Las Vegas is Randy Milne! Want to win a trip? CLICK HERE for details.

As I am sure everyone is aware, the Bank of Canada (BOC) has released its January Monetary Policy Report (MPR). As I imagine this is not the average person’s typical bedside read… READ MORE

Using multiple mortgage brokers to complete against each other is certainly a risky play that we don’t suggest and I would like to explain why. We have had a number of situations in the past where people have literally lost their homes because of these tactics… READ MORE

Please don’t use your home as an ATM. Far too many families don’t properly manage their spending and rack up their credit cards expecting to use the equity in their homes to pay the bills. Using the equity in your home to pay for flat screen TV’s and leather sofa’s is not suggested. If you can’t afford it yet, then don’t buy it… READ MORE

Add me on FACEBOOK (if you like)… CLICK HERE

<<< Media >>>

• mortgagebrokernews.ca: BC broker win’s Oprah’s spot light

Follow these links for details of the new tax programs from the Provincial Government:

http://www.pstinbc.ca/media/2012_housing_rules_FEB.pdf

http://www.pstinbc.ca/buying_goods/buying_a_home/new_home_tax_calculator