Did you know that the majority of first-time homebuyers are Millennials? That’s right; Canadians born between 1980 and 1995 now represent a full 77 per cent of first-time homebuyers. If you fit the mold, then get a leg up on the competition as we enter the year’s hottest real estate month. Here are our five top tips for first-time homebuyers.

First-Time Homebuyers’ Tip #1: Prioritize your house (or condo) hunt April is the busiest month for real estate transactions. The MLS is on fire; your real estate agent will be texting you non-stop, and other prospective buyers will be out in full force. If you’re looking to buy this spring, now’s the time to take a few personal leave days to house hunt. Sit down with your partner to hammer out priorities so you’re on the same page when it comes to your house hunt. Then, once you see a strong candidate, be ready to act fast.

First-Time Homebuyers’ Tip #2: Get pre-approved It’s important to launch your house hunt having already obtained pre-approval for a mortgage. This marks you as a serious buyer, and lets you jump on a property you are interested in without losing time applying after the fact. Mortgage pre-approval also helps narrow your search as you have your price range established.

Use our handy Financial Planning Calculators to get an idea of how much of a mortgage (and home) you can afford.

First-Time Homebuyers’ Tip #3: Search the hot new neighbourhoods

Millennials are more committed to car-free lifestyles than the average Canadian. Accordingly, many condo developers have planned communities geared at diehard urbanites, with proximity to

public transit, supermarkets, well-lit bike and running paths, dog-friendly green spaces and amenities such as bike lockers. Be sure to check out high-density condo communities to see what they have to offer for you.

First-Time Homebuyers’ Tip #4: Consider moving out of town

Many first-time homebuyers are trading big metropolises for smaller cities that are in the early waves of urban renewal. These emerging markets offer great deals, particularly on detached houses. For born-and-raised urbanites, these emerging cities can mean less culture shock versus heading to the ’burbs. Often these locations offer extensive public transit, a thriving cultural and retail scene, and easy access to the larger urban hub (which can be handy if you still work there).

First-Time Homebuyers’ Tip #5: Use social media to help find a home

Finally, don’t limit your house hunt to the MLS or real estate agent websites. The real estate market is a fascinating subject – as any HGTV junkie will attest! – and a number of bloggers are probably busy covering the very neighbourhoods in which you are house hunting. Googling “real estate blog” and your city, or specifically your dream neighbourhood, will yield a variety of options. They’re a great way to get sneak peek of exclusive listings and private sales, and to survey comparables and get a feel for your desired community.

Did you know that the majority of first-time homebuyers are Millennials? That’s right; Canadians born between 1980 and 1995 now represent a full 77 per cent of first-time homebuyers. If you fit the mold, then get a leg up on the competition as we enter the year’s hottest real estate month. Here are our five top tips for first-time homebuyers.

First-Time Homebuyers’ Tip #1: Prioritize your house (or condo) hunt April is the busiest month for real estate transactions. The MLS is on fire; your real estate agent will be texting you non-stop, and other prospective buyers will be out in full force. If you’re looking to buy this spring, now’s the time to take a few personal leave days to house hunt. Sit down with your partner to hammer out priorities so you’re on the same page when it comes to your house hunt. Then, once you see a strong candidate, be ready to act fast.

First-Time Homebuyers’ Tip #2: Get pre-approved It’s important to launch your house hunt having already obtained pre-approval for a mortgage. This marks you as a serious buyer, and lets you jump on a property you are interested in without losing time applying after the fact. Mortgage pre-approval also helps narrow your search as you have your price range established.

Use our handy Financial Planning Calculators to get an idea of how much of a mortgage (and home) you can afford.

First-Time Homebuyers’ Tip #3: Search the hot new neighbourhoods

Millennials are more committed to car-free lifestyles than the average Canadian. Accordingly, many condo developers have planned communities geared at diehard urbanites, with proximity to

public transit, supermarkets, well-lit bike and running paths, dog-friendly green spaces and amenities such as bike lockers. Be sure to check out high-density condo communities to see what they have to offer for you.

First-Time Homebuyers’ Tip #4: Consider moving out of town

Many first-time homebuyers are trading big metropolises for smaller cities that are in the early waves of urban renewal. These emerging markets offer great deals, particularly on detached houses. For born-and-raised urbanites, these emerging cities can mean less culture shock versus heading to the ’burbs. Often these locations offer extensive public transit, a thriving cultural and retail scene, and easy access to the larger urban hub (which can be handy if you still work there).

First-Time Homebuyers’ Tip #5: Use social media to help find a home

Finally, don’t limit your house hunt to the MLS or real estate agent websites. The real estate market is a fascinating subject – as any HGTV junkie will attest! – and a number of bloggers are probably busy covering the very neighbourhoods in which you are house hunting. Googling “real estate blog” and your city, or specifically your dream neighbourhood, will yield a variety of options. They’re a great way to get sneak peek of exclusive listings and private sales, and to survey comparables and get a feel for your desired community.

If you find yourself in the unfortunate position of getting divorced, have no fear, because help is here!

Divorce, while often times feels like a death, it is also the beginning of your new life.  And while it can be scary it can also be exhilarating and life changing.

As women, we often make the mistake of being too trusting or giving the proverbial “benefit of the doubt”.  But in a divorce that cannot happen.  In my career as a mortgage broker I have seen too many women have their credit ruined because they trusted that the ex spouse would pay the bills as agreed to.  BIG BOWL OF WRONG!!

If you have not done it before, then divorce is the time to take charge of your finances.  It’s vitally important to keep your credit intact and in good standing because, bad credit haunts you and follows you for 7 years.

Here are a few tips to keep you on track and ensure your credit does not take a beating like your poor little heart has.

1. Ensure that if you have joint debt (credit cards, lines of credit etc.) that you know who is paying what.  DO NOT trust your ex to pay the bills, because as soon as some other woman (or man) comes along and he wants to wine and dine her, those debts take a back seat.  Often the debts don’t get paid or are paid late, and because you are jointly responsible, your credit takes a hard hit as well.  So if you have agreed as to who is paying what debt, ensure that you have yourself removed from that joint debt as soon as you can.
2. If you have a mortgage and you are both equally responsible for the payments until you either reach a settlement or sell the house, make sure that you continue to make the payments from an account you can monitor.  That is have your ex pay his share of the mortgage to you and then you pay the full amount from an account that is in your name.  Recovering from a mortgage that shows late payments, NSF payments and missed payments, is a long hard process. Do not fall for the “I’m paying my share, don’t worry”
3. Treat the divorce like a business.  Get everything that you can in writing.  The sooner that you hammer out an agreement the easier and quicker and most cost effective it will be. Even if you do not negotiate a separation agreement right away, ensure that you agree, who is responsible for what. It is crucial to keep your credit in good standing.  Divorce is already hard enough and emotionally draining without having to deal with creditor phone calls, and juggling missed payments.  And try getting your own credit card with a bad credit rating, you’d likely have more success getting a sitting with the Pope than a credit card!

Look, I am not trying to scare you, I am just reminding you to embrace your independence and take care of your financial well being.  Take charge of your finances.  It is such an empowering feeling to be in control of your bills and your money!

If there are children involved, remember this, they are children!  Do not make them a pawn in your divorce.  Do not pit your children against one parent.  It causes anxiety and confusion as they feel that they have to choose a parent and that they can’t love them both.  Your children only have one childhood.  Do not take that away from them.  Lastly do not talk badly about the ex in front of the children.  Talk about what a “loser” or “cheat” he is over wine with your friends when the children are not around.  It is an unfair and stressful position to put the children in.  Remember they did not choose you as parents and they are a casualty of the divorce, so make sure you children know, that they are loved, that they do not have to choose between the parents, and that lastly, none of it is their fault.

Finally know this.  It does get better and in time, you will likely acknowledge that getting divorced was one of the best decisions that you made.  When you feel yourself faltering and feeling nostalgic and missing your ex, simply remind yourself what brought you to the position of getting divorced in the first place. Give your head a shake and snap out of it!!!

Trust me; I know what I am talking about.  I have lived through divorce, bankruptcy as a result of divorce, cheating, bad credit etc.  You name it and I experienced it.  My climb back out of financial ruin was a situation that I would not wish on my worst enemy….OK maybe one or two!!!  The climb out was hard.  It made me who I am today (a pretty awesome ladyboss).

I hope that sharing this information will save you some grief in your own struggle.  There is life after divorce, there is love after divorce, there is money after divorce and there is mortgage help in just such a situation from Dominion Lending Centres.

10 QUESTIONS FOR FIRST TIME BUYERS

As a first time home buyer, the process of purchasing a home can seem very daunting.  From a financing standpoint, here are 10 common questions I hear from first time home buyers.

1. What’s your best rate?

This is by far the most common question.  Rate is a small part of your mortgage contract but its often the most talked about.  People become “rate sensitive” when they hear their neighbour or co-worker got 2.49% and they want the same rate.

Some lenders will dangle these low rates to entice you but don’t be fooled.  The lowest rates almost always come with conditions such as high pre-payment penalties or quick 30 day closings.

Is saving $15/month on your mortgage payment worth paying a penalty up to 9 times higher when you sell or need to refinance in 3 years?  No broker or website can secure a rate without a full application and credit bureau.

2. What’s the maximum mortgage amount for which I can qualify?

My suggestion is set a budget your comfortable with and let your Dominion Lending Centres mortgage professional tell you how much mortgage your budget allows.

The two ratios used to determine how much mortgage you qualify for are the Gross Debt Service Ratio (GDS) & the Total Debt Service Ratio (TDS).  Your GDS is composed of your new housing cost such as your mortgage payment (principal & interest), property taxes, heating costs and any strata fees.  Your TDS includes your GDS as well as any other monthly liabilities such as car loans, credit card debts, lines of credit etc.

Depending on your credit score, the maximum GDS/TDS ratio is 39/44.  This means your GDS shouldn’t be more than 39% of your gross income.  Your TDS shouldn’t be more than 44% of your gross income.  If your gross income is $100,000/yr you could allocate $39,000/yr to GDS & $44,000/yr to TDS.

3. How much money do I need for a down payment?

For owner-occupied homes, the minimum down payment required is 5% of the purchase price for homes under $500,000. For homes over $500,000 10% down payment is required on the amount over $500,000 up to $1M.  Anything over $1M requires 20% down as a minimum.  If you want to avoid CMHC mortgage insurance then 20% down payment or greater is needed.

Any rental properties require a minimum of 20% down.

4. What happens if I don’t have the full down payment amount?

As a first time home buyer you are eligible to use your RRSP as a form of down payment to a maximum of $25,000. Your RRSPs can be used without being taxed if you pay back within 15 years.

Another popular option is a gifted down payment.  A gift can come from an immediate family member to form part or all of your down payment.

Some lenders will also allow a flex down program.  This means you borrow the money from a line of credit and this loan is factored into your debt service ratios.

5. What will a lender look at when approving me for a mortgage?

Generally speaking, the lender will want to look at your source of income, employment history, debt levels and repayment history and the actual property itself.

Lenders want stability.  By vetting and checking the above, the lenders feel confident you are able to make your mortgage payments and in the unlikely event you default, they know the property is marketable.

6. What’s better, fixed or variable rate?

Not everyone qualifies for a variable rate because the qualification rate is currently 4.74% vs the 5 year fixed of 2.54%.  That’s a big difference!

Assuming you qualify for a variable, it boils down to risk tolerance and your plan for the property.  Fixed rates give you stability over the term of your mortgage where a variable rate is tied to the prime rate, currently 2.70%.  This means your mortgage payment could decrease or increase depending on what the Bank of Canada decides.

Variable rates can save you thousands if you sell or refinance during your term.  The standard penalty on a variable rate is 3 months interest.  The penalty on a fixed rate is calculated using the interest rate differential and depending on your lender can sometimes be in the tens of thousands of dollars.

Your Dominion Lending Centres mortgage professional can discuss all the differences and benefits for you.

7. What credit score do I need to qualify?

Anything over 680 is considered AAA with most lenders.  A score above 680 gives you access to all the discounted rates.  If your score is below 680 there are options but often at higher interest rates.

8. What happens if my credit score isn’t great?

Take action immediately to increase your credit score.  If possible pay off all your debts on credit cards and lines of credit as this will increase your score substantially.  Its a good idea to always pay your balance in full each month as this creates a pattern of positive repayment.

Don’t take on anymore new debt such as car loans or new credit cards.  Make sure everything is up to date meaning no overdue collections or old Telus or Rogers bills outstanding.

9. How much are closing costs?

Closing costs vary but lenders typically want to see that you have 1.5% of the purchase price on hand for closing costs.  If you bought a condo for $500,000 you’d need $7,500 for closing costs.  This is only a guideline and costs vary.

Closing costs will cover things like, inspections, lawyer fees, property transfer tax, appraisals, and title insurance.

10. How much will my mortgage payments be?

Obviously this depends on your mortgage size, rate, amortization, repayment schedule, any CMHC insurance and if your lender is collecting your property taxes for you or not.  My suggestion is stick to your budget!

If you have any other questions, please feel free to contact Dominion Lending Centres – we are always happy to answer all your questions.

This summer has flown by, and what a summer it has been for Bullying Ends Here! Just last week, I traveled to Amsterdam Netherlands to present the program to 400 law enforcement delegates from around the world. This also signaled the first time that the program had been presented outside of Canada’s borders. What a humbling experience to say the least. Given there were delegates from 25 different Countries, there were four translators available to translate all that I said into four languages. I have no idea how they kept up to me!

The feedback was tremendous and there are unofficial invitations now for Australia, France, New Zealand, the UK and US. Now I just have to find a way to make all of this work while still recognizing we have much work to do right here in Canada of course!

With that said, and with the new school year just a few weeks old, I thought it the best time to offer some tips to prepare your child for the upcoming school year.

Back to school can be a very difficult time for youth. The uncertainty of the new year, the high expectations set by parents, the challenges of knowing where they will fit in and of course, bullying.

This is the ideal time to sit down with your child and have real discussions about kindness, compassion and explaining how everyone is unique in their own way. Turn the TV off, set your phones aside and create a safe environment to speak in. Speak openly and honestly. Let them know the importance of reaching out and speaking up if they see something negative or if something happens to them. Reassure them that they can come to you anytime to talk. Educate your child on how our words can have serious consequences if they aren’t used appropriately.

Lastly, speak about how to use the internet responsibly, in particular social media. For the younger students, I always recommend that an adult do periodic checks to ensure everything is appropriate. I realize that some think that this might ‘infringe on privacy’, but the reality is that times are different now. Our kids are using the internet to attack and be attacked. There is very little social media safety taught in schools and what is said on the internet is there forever. This is the time to ensure the internet is being used properly. We teach kids to drive a car. We restrict the movies they can see or games they can play, yet we give them the key to the cyber world without any direction at all. We all play a role in keeping our kids safe.

As always, I am always here to email if you have any questions. The website also has dozens of resources available to help with any social media questions you might have.
I trust your summer has gone well and I look forward to coming/returning, to a community near you this school year.

Courtesy of Tad Milmine, Founder, Bullying Ends Here 

Recently, I had the pleasure of meeting a lovely couple. He was 75 and she was 80 years young. They were both disabled and needed to purchase a new car because their previous car had fallen apart on them. As a result, the couple had to use disability transportation buses to get around.

When the couple tried to get a loan from the bank, they were rejected because they had never borrowed money in their life before, so they had insufficient credit history. Since it was getting so hard for them to get around, they started feeling depressed and lonely. Their car gave them the freedom and flexibility to not only get to their appointments and pick up groceries, but also to socialize and meet with friends and family, which was very important to their livelihood.

I met this couple when they had exhausted all of their options and they were urgently looking for a solution. The couple had home equity to tap into and that’s when they discovered the CHIP Reverse Mortgage. Once their reverse mortgage was approved with HomEquity Bank, they were able to replace some windows in their home as well as afford a new car. They saved the rest of the proceeds from their mortgage for everyday living expenses and for an emergency fund.

I jokingly asked them if they would buy a BMW or a Jaguar, but humbly, they both said that they preferred to get a Toyota Camry.

I always say to myself “Who’s life did you change today?” And with this couple, I was able to help them get their mobility back. A reverse mortgage can help improve the lifestyle of you or a loved one the way it helped this couple. These and many other customers that I help inspire me to do what I do every day!

If you would like more information about reverse mortgages, contact a Dominion Lending Centres mortgage professional today.

Courtesy of Bob Dubask – HomEquity Bank – Business Development Manager 

Recently I was fortunate enough to travel to the small island country of Iceland in the middle of the North Atlantic. It had not been a destination on my radar until I started to plan a mountain biking trip for my milestone 40th birthday.

I knew I was going to utilize the locally owned (Whistler based) Big Mountain Bike Adventures, an award-winning global mountain bike adventure company. So I started following their Instagram feed @bigmtnglobal. I had shortlisted four of their trips, but one particular image from their Iceland trip clinched my decision, so I booked my spot and there was no turning back!

As an avid and passionate mountain biker, I was extremely excited about placing my bike tires on foreign ground.

As my departure drew closer, I became increasingly anxious about traveling on my own. I had traveled internationally many times, but never solo. It was something that I had always done with my wife, and I usually just followed. I figured out how to harness the anxiousness and bottle it,; put a label on it called EXCITEMENT… the fine 2016 vintage! I tried to focus on the journey and not the destination. I embraced the adventure!

What I came to realize was how much I still love to explore. I grew up roaming the forest around our home, which later developed into a love outdoor excursions and guiding. In my late twenties and early thirties I was fortunate enough to experience the guiding lifestyle.

As soon as I landed in Iceland to start the bike adventure I realized then and there that I want to continue exploring. This would be the first of many trips with friends and family.

You’re probably asking yourself, what does this all mean? Why is this Dominion Lending Centres Mortgage Broker talking about adventure travel within a mortgage and financing platform? It’s very simple. As the title says, LIVE YOUR LIFE.

Buying your first or second (or even third) home isn’t all about buying the biggest or the best. One’s lifestyle and long-term goals, plus needs and wants, should be the only things to consider, never mind how that new home will look on Facebook. My office is located in an area with an average household gross income of $95,000. Here is an example of that household’s maximum real estate purchase price.

Purchase Price: $600,000

Down Payment: $35,000

Mortgage Amount: $565,000

Mortgage Insurance: $20,340

Total Loan: $585,340

Monthly Mtg Payment: $2,620

Est. Monthly Strata: $300

Est. Monthly Property Tax: $209 ($2,500/year)

TOTAL Monthly Payment: $3,129

Property Transfer Tax: $10,000

Home Inspection: $400 (estimate)

Title Insurance: $250 (estimate)

Approx lawyer fees: $1,500 (estimate)

Can your household really afford this? Yes, this is what the federal lending guidelines allow you to extend yourself to, but do you want to live at the limit? Bear in mind that this doesn’t consider any travel, entertainment, social nights out, re-occurring monthly expenses or adding to one’s savings.

Buy within your means and don’t try to keep up with the Joneses. I have made a conscious decision to live within my means and save for the big trip as well as purchases.

What are your big goals, besides owning a home? Build them in to your purchase decision. Do an internal audit. Does the $3,129 home payment match your personal budget? Does it fit into your ultimately LIFE plan?

Courtesy of Michael Hallett, AMP – DLC Producers West

Borrower or credit costs can be outrageous. To go get a line of credit, you are usually paying upwards of 6% to 7.5%. These lines of credit can be based on interest only or principle and interest payments. This kind of loan is based on how the lender views you as a risk. In other words, they look at the amount of money you are making and the amount of debt you have and then decide how much credit they are willing to give you. Usually, these loans are not very big as there is no security. And even though a lender considers your income vs your debt for a mortgage you will not get as much as you would get through a mortgage BECAUSE….

…a mortgage is based on securing a loan against a property. If you fail in making a mortgage payment and eventually go into foreclosure, the lender always has a property that they can sell in order to get their loan back. The lender looks at you as a risk, but they look at the property as a potential asset.

While the lender is taking advantage of your property by leveraging it against you as a risk, you also have the ability to do the same thing.

A great product that is available to owner-occupied properties is a Home Equity Line of Credit or HELOC (pronounced Hee – lock) as it is known in the banking world. A HELOC is a product that uses the equity that is built up in your owner occupied home and uses it as a line of credit, securing it against your property. The result is a line of credit with a very manageable interest rate (usually around 3.2% in today’s market) that you can use toward anything you want. We recommend that you don’t use it for everyday expenses as that can get you into a lot of trouble. But there are strategies that you may want to consider such as:

a. That much needed home renovation

b. College tuition for your children or yourself!

c. If your income and debts are within lender guidelines, you may even be able to use your HELOC for a down payment on an investment property

d. So much more!

Generally speaking, you can borrow in a HELOC up to 80% of the appraised value of your property (minus your mortgage of course). This is considered a revolving loan where you can take or pay back cash as often as you want without having to reapply for a loan. But note that when you sell the property, your HELOC gets paid back with the proceeds of the sale (if necessary) and that line of credit is no longer available to you.

Make sure you don’t get a HELOC mixed up with a Home Equity Loan. This type of loan is based on a one time loan for a specific or one time occasion such as a vehicle. On this type of loan the rate and monthly payments are fixed and you pay it back on a scheduled payment plan, much like a mortgage. However, interest rates on these types of loan are generally a little higher than the HELOC loan.

In order to get a HELOC you will likely have to pay for an appraisal (around $250 – $300) and then the legal fees (around $500 – $750). However, you don’t have to pay any banking fees (like having a chequing account) as it is considered a revolving loan.

If you are interested in finding out what your HELOC options are, please contact a mortgage professional at Dominion Lending Centres. We’d be pleased to discuss your loan options with you.

Courtesy of Geoff Lee, AMP – DLC GLM Mortgage Group 

After diligently saving your pennies and carefully managing your credit to be as strong as possible you are finally ready to start house hunting for that perfect dream home. Between you and your new life lies the seemingly terrifying mortgage process so let’s go over what you can expect so there are no surprises along the way.

1. Pre-approval

The first step should always be to choose a great mortgage professional (like the fine folks at Dominion Lending Centres!). Referrals from friends and family and your real estate agent can help with this. You are trusting the largest loan you are likely to take to this person so make sure they know what they are doing. They are going to take an application, pull your credit, and determine what your maximum purchase price will be. You will be asked to provide a whole bunch of paperwork to verify your information

• Letter of employment and pay stub
• Down Payment Verification
• 2 Year’s Notice of Assessment and/or T4’s
• Void Cheque

This list is the very least of what you may be asked for. If you are self-employed, separated, previously bankrupt, new to Canada, receive bonuses or many other scenarios then you will likely be asked for much more. Given the current state of the economy and the record levels of attempted mortgage fraud, the banks have to be very careful these days.

The other real benefit to the preapproval is that you can house hunt with confidence knowing that your entire situation has been assessed. You will not look at homes out of your price range either which can save you the heartache of falling for a home you cannot afford. It also makes your offer very strong if you find yourself in a competition with another buyer.

2. Approval

Hopefully you provided the bulk of the paperwork for the preapproval but you may be asked for updated information such as a more recent paystub or bank statement.

At this point your application is re-assessed by the lender. They will take a look at the property you are purchasing and make sure it fits their guidelines. Then it is sent off for mortgage default insurer approval and once then you will get the official approval to sign. Make sure that you do not remove the financing condition until all lender conditions are met. Your mortgage professional will tell you when that is.

3. Final steps

Once you have met all of the conditions, the lender will send the paperwork over to the lawyer’s office. It takes the lawyer a few days to get things ready for you to sign and when you go you will be asked for:

• Balance of the down payment in the form of a bank draft
• 2 forms of ID
• Void Cheque

The day of funding, the lender sends the funds to the lawyer who sends them to the seller’s lawyer who upon receipt of the funds gives the all clear and you will be given the keys to your new home.

It is a great idea to call your lender a bit after the mortgage closes to make sure everything is set up the way you wanted.

Make sure to ask questions at each stage of the mortgage process. The onus is on you as the person signing the contract to understand the loan you are being offered and the terms it comes with. There are so many resources available to you as a home buyer that it is easy to learn a bit about mortgages before you sign.

It can seem a bit daunting but we broke it down into bite size pieces so you will be ready to navigate it like a boss and before you know it the realtor will be handing you your keys and your new life can begin.

If you are ready to start talking about your mortgage, call any of the mortgage professionals at Dominion Lending Centres today!

Courtesy of Pam Pikkert, AMP – DLC Regional Mortgage Group