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VERICO
As independent mortgage brokers, we have access to special lenders in addition to mainstream
banks and trust companies to help you get approved even if you fall outside the guidelines.
5% down payment rule still remains in effect for property values under $1 Million dollars
2007 40 years of amortization (the longest you could get at the time) at an average interest
rate of 5.71% - $350,000 = $1,831* would have been your mortgage payment
Jared: Here's the good news is, of course, we have multiple sources of lenders to shop
because every bank has their own set of rules and their own set of policies.
So if you're insured, which again is less than 20% down, there's also three insurance
companies. There's the Canadian Mortgage and Housing Corporation, which all of us as taxpayers,
we own a piece of. And then there's two other private insurance companies which is called
Genworth Insurance and Canada Guarantee Insurance.
They do exactly the same thing as Canadian Mortgage and Housing Corporation, except for
they are private insurers. Now they do have different sets of rules and policies relating
to self-employed, relating to - especially self-employed let's say that's number one.
So they have a different documentation.
So we're able to send it to each, depending on which lender you work with. They do so
much work with those insurers, so they're able to get really great deals if you have
less than 20% down depending on what insurer we use.
Now the interest rates of course I talked about, are the lowest in the industry. We've
seen, we've got last year of course when the rate war came out, and of course Flaherty
as you've seen in the papers told the banks not to stop having the rate war.
There's a rate war on. Okay? Flaherty's trying to say that. I'm telling you right now, there's
a rate war on and it's happening right now. So for you the consumer, this is the best
opportunity you could ever have and I've been doing this for 21 years. It's phenomenal where
the interest rates are at right now.
5% down you can still buy. You can still use your RSP's, too if you want to be, if you're
a first time home buyer or have not owned your principal residence in the past five
years. If you're able to draw up to $25,000 out of your RSP's tax-free. You do have to
pay that back over a 15 year period, so you do have that flexibility. That's still okay.
And in addition to that, you are able to use gifted down payments. So what we're seeing
a lot of people do, especially first time home buyers, as our parents are aging they
seem to have some extra cash available and if you're nice to them they'll loan it to
you, or gift it to you as a down payment, so you have that flexibility.
So those programs are also in fact, so there are still lots of ways for first-time homebuyers
to still get in this marketplace. And especially right now, like I said with a lot of the clients
we're working with is you're able to, at 2.89% or 2.79% interest rates, even if you went
straight to monthly payments, 50% of every payment you make is going towards principle
right off the bat.
That hasn't happened before. You know, you're paying down more principle on your home than
you've ever had in the history of mortgages. So it's a brilliant feature of that.
Again just to show you, we were showing again that in 2007 with a 40-year AM, this is the
last time that the interest rates were sort of holding at that 5% range. And if we had
a 40-year AM, you'd be paying $1831 a month.
And of course, we did this a month ago. It was 3.29% and it's dropped even since then.
But your payment on $350,000, the same money over 25 years was $1700. So the illusion that
the longer amortizations, you know, make it less affordable in Vancouver are not necessarily
so. You know, because the interest rates have gotten so low, the affordability factor is
still there.
One thing that I will also mention, too is that if you're not a first time homebuyer,
or even if you are a first time homebuyer and you have more than 20% of the purchase
price down, lenders are still doing 30 and 35 year amortization. So those are still available
to you, so long as you still have 20% of the purchase price down.
Call Now to Save on Your Mortgage Dreyer Group Mortgage Brokers
VERICO 1 (800) 687-9020
1 (604) 669-6006 www.dreyergroup.ca