Buying a home is a big step. A big, very exciting, potentially stressful step! How can you take the hassle out of the equation and keep your buying experience super positive? Easy, Surround yourself with a team of experienced professionals!

Many experienced realtors insist on starting your financing first, that’s where I (Mortgage Broker) come in.

What is a Mortgage Broker? A Mortgage Broker is an expert in real estate loans that acts as a match-maker between home buyers looking for money and lenders with funds available to borrow. A broker will collect information from you about your employment, income, assets, loans and other financial obligations as well discuss your current budget, spending patterns and goals in order to get a thorough understanding of where you’re at and where you’d like to be. From here they assess the strengths and any weaknesses in your application and can advise on potential suitable financing options and any next steps you might need to take in preparing yourself for loan approval.

Talking with a Broker before you start shopping is helpful for a number of reasons:

You’ll develop a well-founded expectation of the price range and payments that you can afford.

You’ll have a chance to address any potential gaps in your application for financing BEFORE you’re in a time crunch to meet deadlines for closing.

Sellers may take your offer more seriously when you tell them you’ve been pre-approved for your financing putting you in a better position to negotiate (price, possession date, inclusions, other terms, etc).

You and your Mortgage Broker will begin to compile your documentation so that your application is ready to go when you find the perfect home, leaving your mind free to start arranging furniture in your new place.

So why use a Mortgage Broker rather than your bank?

A Mortgage Broker has access to loans from a wide range of lenders. That means that you have more potential places to get approved, AND can take advantage of best products, top programs and lowest pricing!
A Mortgage Broker must complete a series of courses and pass the corresponding exams prior to obtaining a license to sell mortgages. In order to maintain that license a Broker must uphold the highest standards of moral, ethical, and professional conduct – including ongoing education and training.

A Mortgage Broker working with multiple lender options means that they truly SHOP for the best programs and rates for you based on comparisons and choices and don’t simply sell you the limited products they have to offer through a single bank source.

Mortgage Brokers work EXCLUSIVELY in mortgages so they are mortgage product specialists rather than banking generalists. Team members deal with real estate transactions involving deadlines and conditions everyday as part of their job. They understand the urgency of meeting these commitments to ensure a successful transaction for everyone involved.

Contact me today to get pre-approved!

Dillan Kelly

403-894-5818

dillan@dlcme.ca

Why should you choose to use a mortgage broker instead of your bank?

Lower Interest Rates- Our mortgage rates are discounted on average of 1.20% over what the bank can offer you. A 1% rate discount on a $250,000 mortgage can save you more than $9,400 in interest costs over a 5 year term.                                                    

Best Mortgage Options- Mortgage brokers shop the lenders market to find you the best option for your particular situation. Banks are limited to products carried by their institution.                              

Bank Loan Officers are employees of the bank- Mortgage agents work for you, the borrower and not the lender.                          

Fast Service- A mortgage broker can often get you a mortgage approval in a day. In addition we can meet you at your convenice; like your home or office. Services from a broker are free.    

Feel free to contact me at dillan@dlcme.ca or 403-894-5818 if you have any questions about the perks of using a mortgage broker.

Thanks for reading,

Dillan Kelly

Dominion Lending Centres Mortgage Excellence                                                                                                                                                                                                                                       

With mortgage interest rates at all time lows, it is a great time for first time home buyers to take the leap into the market. There are some considerations and prepartions to be made before starting the process.

Mortgage rules changes that came into effect July 2012 shortened the max amortization from 30 years down to 25 on insured mortgages. This has made it more difficult for buyers to meet debt-servicing requirements of lenders due to the higher monthly payments of the short repayment structure.

These components of the lending landscape have put first time home buyers in the hot seat. Most young people are newer to both the employment game and the credit world and have had limited time to build up their own savings for down payment.

Canadian Mortgage insurers (CMHC. Genworth and CG) have minimum credit requirements of two years history on at least two credit accounts with a good repayment record. Paying on time on at least two accounts, such as credit card or other loans demostrates credit responsibility because these two typers of accounts report to the credit bureaus, a third party, and demostrate a borrower’s credit responsibility.

Avoiding credit means there is no third party record of how credit is handled, leaving financial institutuions lacking the tools that helps asses how a potential borrower will handle repayment of such a large loan. While it’s not advisable for young people to apply for credit everywhere, it is a good idea to establish two different credit accounts as soon as possible to create a strong credit history.

Many first time home buyers are young people with limited employment history, there is a good chance they have not saved up a minimum of 5% down payment yet. Direct relatives, such as parents can gift the down payment to help them buy a home. There can not be requirements for re-payment and they should have no invested interest in the property being bought.

Keep in mind that if the first time home buyer has limited credit and their down payment is being gifted, they are really not bringing much to the equation as far as their own personal risk, so many lenders are requiring co-applicants to bring some strength to the deal. 

If you have any question about first time home buyers or want to get pre-approved please contact me, Dillan Kelly at 403-894-5818 or dillan@dlcme.ca

Thanks,

Dillan

Dominion Lending Centres Mortgage Excellence

Hello,

If you currently have a mortgage I have some great news for you! Renewing your mortgage early could actually save you thousands. If you have a mortgage, you have a mortgage term. The mortgage term is the time before your mortgage comes up for renewal. People have been taking advantage of renewing ealry for the past 5 years due to rates being typically much less than what they signed up for 1-5 years ago.

If you don’t think that you have enough equity in your home to refinance, I have good news. This is not a refinance, it is purely a switch/transfer. That means no new money is coming out, you are simply taking your current mortgage and switching it over to a different bank with the same amount but at their new rates.

What’s the catch?  Payout penalties.They can be a deal breaker in some scenarios and not make it worth while, but in a lot of cases recently it is definitely worth it despite the penalty.

If you have an interest rate over 3% it is worth your while to look into renewing your mortgage. The money you save on the renewal can go towards cutting down your amortization on your mortgage so you can save even more or be used for a vacation or other personal uses!

Please feel free to contact me if you have any questions about renewing early or would like me to look into your personal renewal situation to see how much money you can save! Email me at dillan@dlcme.ca

Thanks for reading,

Dillan Kelly