NOT ALL DOOM AND GLOOM – NEW CANADIAN MORTGAGE RULES EFFECTIVE OCTOBER 17, 2016

The Minister of Finance announced on Monday new Canadian mortgage rules effective October 17,2016. The new rules will impact high ratio buyers – those with less than 20% down payment. Other rule changes are expected to follow so stay tuned for details as they unfold. The important thing to remember is that this is not the end of the world! Rather, it is the time when you really need the voice of reason from an experienced Dominion Lending Centres mortgage professional.

Currently a home buyer with less than 20% (high ratio) requires mortgage insurance through CMHC or one of the private insurers. The financing rules for this purchase differ from those buying a home with 20% or more down payment. However, both types of buyers have one rule in common – to access short term fixed rates (1-4 years) or a variable rate mortgage they must qualify at the benchmark rate (currently 4.64%). They don’t pay that rate, but it is a metric used to qualify for access to the variable or short term rate products.

Effective October 17th all high ratio buyers will have to qualify at the benchmark rate for all terms.

For example a home buyer currently qualified to purchase with 10% down for a mortgage of $527,000. After October 17th, this home buyer would qualify for a $420,000 mortgage. This equates to a 20% drop in buying power. (All things being equal in terms of property taxes, income, debts, etc).

Buyers in this situation would have the option to make up the shortfall with more money down or add another person to the mortgage to help qualify or purchase a lower priced property. For detached homes with a suite the use of rental income could help the buyer make up some or all of that difference in qualifying.

Any buyers with an accepted offer in place will have till October 16th to have a firm financing approval in place. Buyers who secure an accepted offer who do not have a firm agreement from their lender (and the respective mortgage insurer) in place by October 16th will be subject to the rule change October 17th.

This is crucial timing so talk with your realtor and Dominion Lending Centres mortgage professional in detail if you are ready to make an offer or have an accepted offer with no current financing in place.

There are no specific deadlines in place by the Minister of Finance regarding pre-sale purchases set to close in 2017. So discuss a strategy with your DLC mortgage broker and realtor if you are a buyer in this situation.

The announcement also indicated a change later this year to mortgages for conventional borrowers with financing that is bulk-insured. This represents a number of banks and other lenders who choose this as a strategy for their portfolio. This could impact all borrowers (those buying or refinancing). We will gain more details on this specific outcome within our industry channels and provide an update as soon as possible.

Note – when watching the news on this subject always remember to do your due diligence and consult with your professional mortgage broker. The media does not always get the details correct and can provide information that can be confusing.

MORNEAU TAKES OUT THE BIG GUNS TO SLOW HOUSING

Yesterday, Ottawa unveiled major initiatives to slow housing activity both by potentially discouraging foreign home purchases and, more importantly, by making it more difficult for Canadians to get mortgages. As well, the Finance Minister is limiting the degree to which mortgage lenders can buy portfolio insurance on mortgages with downpayments of 20% or more. Ottawa has clearly taken out the big guns to slow housing activity, which is widely considered to be too strong in Vancouver and Toronto. Ironically, home sales have already slowed precipitously in Vancouver in recent months and the BC government introduced a new 15% land transfer tax on foreign purchases of homes effective August 6, the effects of which are yet to be fully determined.

The measures announced by Finance Minister Morneau are more far reaching than anything considered to date and could well have quite a significant impact. Not only are these initiatives intended to close loopholes for foreign investors, which might help to make housing more affordable for domestic purchasers, but they will actually make homeownership less attainable for the marginal borrower, which is often younger Canadian first-time home buyers.

Officials at the Department of Finance have been studying the housing market and have led a working group with municipalities and provinces, as well as federal agencies such as the Office of the Superintendent of Financial Institutions (OSFI) and Canada Mortgage and Housing Corporation (CMHC). This in-depth analysis has informed today’s announcement.

 Measures Aimed At Foreign Homebuyers

• The income tax system provides a significant income tax benefit to homeowners disposing of their principal residence, in the form of an exemption from capital gains taxation.
• An individual who was not resident in Canada in the year the individual acquired a residence will not—on a disposition of the property after October 2, 2016—be able to claim the exemption for that year. This measure ensures that permanent non-residents are not eligible for the exemption on any part of a gain from the disposition of a residence.
• The Canada Revenue Agency (CRA) will, for the first time, require all taxpayers to report the sale of a property for which the principal residence exemption is claimed.

Measures Affecting All Homebuyers

The Finance Department says in its press release that, “Protecting the long-term financial security of Canadians is a cornerstone of the Government of Canada’s efforts to help the middle class and those working hard to join it.” This is a “Nanny State” measure to protect people from themselves, as the Bank of Canada has long been concerned about the growing number of households with excessive debt-to-income ratios. It will make housing less attainable, at least in the short run. If it, therefore, substantially reduces housing demand, home prices could decline, ultimately improving affordability. This, of course, is not what the 70% of Canadian households that already own a home would like to see.

• Broadened Mortgage Rate Stress Tests: To help ensure new homeowners can afford their mortgages even when interest rates begin to rise, mortgage insurance rules require in some cases that lenders “stress test” a borrower’s ability to make their mortgage payments at a higher interest rate. Currently, this requirement only applies to a subset of insured mortgages with variable interest rates (or fixed interest rates with terms less than five years). Effective October 17, 2016, this requirement will apply to all insured mortgages, including fixed-rate mortgages with terms of five years and more.
• A buyer with less than 20% down will have to qualify at an interest rate the greater of their contract mortgage rate or the Bank of Canada’s conventional five-year fixed posted rate. The Bank of Canada’s posted rate is typically higher than the contract mortgage rate most buyers actually pay. As of September 28, 2016, the Bank of Canada posted rate was 4.64%, compared to roughly 2% or so on variable rate mortgages.

For borrowers to qualify for mortgage insurance, their debt-servicing ratios must be no higher than the maximum allowable levels when calculated using the greater of the contract rate and the Bank of Canada posted rate. Lenders and mortgage insurers assess two key debt-servicing ratios to determine if a homebuyer qualifies for an insured mortgage:

• Gross Debt Service (GDS) ratio—the carrying costs of the home, including the mortgage payment and taxes and heating costs, relative to the homebuyer’s income;
• Total Debt Service (TDS) ratio—the carrying costs of the home and all other debt payments relative to the homebuyer’s income.

To qualify for mortgage insurance, a homebuyer must have a GDS ratio no greater than 39% and a TDS ratio no greater than 44%. Qualifying for a mortgage by applying the typically higher Bank of Canada posted rate when calculating a borrower’s GDS and TDS ratios serves as a “stress test” for homebuyers, providing new homebuyers a buffer to be able to continue servicing their debts even in a higher interest rate environment, or if faced with a reduction in household income.

The announced measure will apply to new mortgage insurance applications received on October 17, 2016 or later.

• Tighter Mortgage Insurance Rules

Lenders have the option to purchase mortgage insurance for homebuyers who make a down payment of at least 20% of the property purchase price, known as “low-ratio” insurance because the loan amounts are generally low in relation to the value of the home. There are two types of low-ratio mortgage insurance: transactional insurance on individual mortgages at the point of origination, typically paid for by the borrower, and portfolio (bulk pooled) insurance that is acquired after origination and typically paid for by the lender. The majority of low-ratio mortgage insurance is portfolio insurance.

Lender access to low-ratio insurance supports access to mortgage credit for some borrowers, but primarily supports lender access to mortgage funding through government-sponsored securitization programs.

Effective November 30, 2016, mortgage loans that lenders insure using portfolio insurance and other discretionary low loan-to-value ratio mortgage insurance must meet the eligibility criteria that previously only applied to high-ratio insured mortgages. New criteria for low-ratio mortgages to be insured will include the following requirements:

1. A loan whose purpose includes the purchase of a property or subsequent renewal of such a loan;
2. A maximum amortization length of 25 years;
3. A maximum property purchase price below $1,000,000 at the time the loan is approved;
4. For variable-rate loans that allow fluctuations in the amortization period, loan payments that are recalculated at least once every five years to conform to the original amortization schedule;
5. A minimum credit score of 600 at the time the loan is approved;
6. A maximum Gross Debt Service ratio of 39 per cent and a maximum Total Debt Service ratio of 44 per cent at the time the loan is approved, calculated by applying the greater of the mortgage contract rate or the Bank of Canada conventional five-year fixed posted rate; and,
7. A property that will be owner-occupied.

These tighter mortgage insurance regulations will reduce the supply of mortgages and/or increase their cost to the borrower.

Consultation on Lender Risk Sharing

The Government announced that it would launch a public consultation process this fall to seek information and feedback on how modifying the distribution of risk in the housing finance framework by introducing a modest level of lender risk sharing for government-backed insured mortgages could enhance the current system.

Canada’s system of 100% government-backed mortgage default insurance is unique compared to approaches in other countries. A lender risk sharing policy would aim to rebalance risk in the housing finance system so that lenders retain a meaningful, but manageable, level of exposure to mortgage default risk.

This proposal by CMHC has been floated for some time and, needless to say, the Canadian Bankers’ Association, is against it. The measure would certainly increase the risk associated with funding mortgages and therefore likely increase the capital required to be set aside against this additional risk. Therefore, in essence, it increases the cost to the lenders to finance mortgages. The lenders will undoubtedly attempt to pass off this increased cost to the borrower or reduce its supply of credit. Right now, the cost of mortgage insurance is borne by the taxpayer.

Bottom Line: These are very meaningful initiatives to slow housing demand, making it more difficult for Canadians to borrow. Finance Minister Morneau has taken out the big guns. I have no doubt that the pace of mortgage lending will slow from what it would otherwise be as a result of these government actions. However, these actions do nothing to address the shortage of housing supply in Vancouver and Toronto.

Housing has been a very important pillar for the Canadian economy, especially at a time when oil price declines have decimated the oil sector and manufacturing continues to struggle. This is a case of being very careful what we wish for– I’m concerned that we might see more of a slowdown in housing than the government was counting on, which will certainly affect jobs and growth and reduce tax revenues at a time when budget deficits are mounting and fiscal stimulus has yet to do its job.

Every mortgage secured by a property will be registered with the land title office.There are two ways your mortgage can be registered on title: Standard charge or collateral charge.  Not long ago, most lenders registered all mortgages as a standard charge.  In recent years, some lenders – mainly the major big banks – have moved towards using the collateral charge.

When choosing your mortgage it is vital you fully understand the terms you are agreeing to. Choosing the right mortgage can protect your interest now and in the future.  Let’s focus on the major differences between the two charges/liens that your mortgage can be registered as.

Know How Your Mortgage Is Registered

STANDARD CHARGE MORTGAGE

A standard charge mortgage is registered for the amount of your mortgage only.  A standard charge mortgage allows you the freedom to freely move lenders at renewal time without incurring legal fees.  As a borrower, you want to be in a standard charge mortgage because it gives you the leverage to shop options at renewal.

A standard charge mortgage allows you to borrow more in the form of a second mortgage or a home equity line of credit (HELOC).  As you pay down your mortgage you can access the equity you’ve gained.

COLLATERAL CHARGE MORTGAGE

A collateral charge mortgage is registered on title for more money than you require to close.  For example, a $500,000 mortgage might be registered on title as a $600,000 charge.  The lender will tell you this is beneficial because it makes it easier to access the home equity without incurring legal fees.

The major downside of a collateral mortgage becomes evident at your maturity date.  If you want to change lenders in order to obtain a better product or rate, you are on the hook for legal fees.  This often deters borrowers from moving lenders and they can feel “forced” to take whatever renewal rate their current lender is offering.

With a standard charge mortgage, in most cases, the new lender will cover the charges under a straight switch(no new money) in order to earn your business.  This means no fees to you and the ability to shop for the best mortgage.

Navigating through the mortgage process alone can be tricky.  Dominion Lending Centres has access to multiple lenders and we can help ensure you receive the perfect mortgage.

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