Join Melanie Buffel, Money Coach and Karen Boies, Mortgage Planner, for a FREE, fun and informative workshop on how to get organized with your money so you can make your dream of a home purchase come true!
The workshop will include:
• How to control your cash and save for a down payment
• How to improve your credit score and why that’s important
• What to expect in added costs with a home purchase
• How to choose mortgage terms
• How to pay off your mortgage faster
• Where to go for more advice!
When: Wednesday, November 21, 2012, 6:30 – 8:00 pm
Where: The Mortgage Centre – City Wide, #210 – 1245 West Broadway Ave, Vancouver, BC
Cost: FREE, please register in advance by sending an email to Karen@mortgagecentrebc.com with RSVP in the subject line.
We have had great feed back from the women who have attended this seminar. A few have registered to return on November 21st, because it is chalk full of information;nn
Please join Melanie and I as we share tips and strategies that will help you whether you are ready to buy a home now odr have it on your vision board as a goal in the future. Of course bring a friend.
Please register in advance by sending an email to Karen@mortgagecentrebc.com with RSVP in the subject line.
For many people they have a goal to pay off their mortgage and be mortgage free when they are ready to retire. Many more of those same people do not have a real plan of action, how are we going to get there? Fewer still have a mortgage planner on their side, helping them get there. With the historical low interest rates in Canada, others are not focused on paying down the mortgage – some even tempted to plan on prolonging the debt as long as possible – well into their retirement years, while trying to eke out a higher investment return.
Here are a few benefits of having no mortgage payments in retirement:
Having no mortgage gives you peace of mind. Once you eliminate your mortgage, you do not need to worry about the additional cash flow that would be necessary to pay that bi-weekly or monthly payment. I have a friend who paid her mortgage off at a rather young age. She often talks about how stress free it is to have a free and clear home. She feels the freedom that being mortgage free gives her. She can up and go wherever she wants, simply because she does not have to worry about that additional income needed to service that debt.
Having equity will increase your choices in retirement. Without a mortgage you do have complete control over where you live. You can stay where you are for as long as you are comfortable, you can downsize and maybe even buy a little winter get-away home in Hawaii or Mexico or like my sister and her husband – Mesa Arizona, where you will find other snowbirds. Bottom line with a free and clear home, you are free to decide how long and where you want to be and live.
Aggressively paying down your mortgage will help you build equity more quickly. Paying off your home quickly can allow you the flexibility of later using the equity to buy investment property, take the equity out to send your children to university, or for you to return to university to finish that degree. It allows you options when your mortgage comes up for renewal. (Especially with the recent government rule changes on insured mortgages, refinancing your mortgage just got a little tougher… the govt has cut back the maximum loan to value from 85% to 80%. In other others, the govt is out of the insurance business when it comes to refinances) Means if you do not have at least 20% equity in your home when your mortgage comes up for renewal, you will be stuck with the rate and terms your lender offers you.
Trying to pay off your mortgage by the time you retire acts as a forced savings. Making a decision to have a debt-free retirement means you will have to save more to gradually get there. This not only helps as you pay less interest to the bank on your mortgage, but it also motivates you to cut down on wasteful spending. Want to get an idea of how much extra money you could be putting towards your mortgage debt….for one month collect a receipt for everything you buy…everything…each day put the receipts in a bowl or an envelope. Then at the end of the month separate the receipts into the categories of where you spent your money (groceries, gas, meals out, coffees….this one adds up…..) Add up each category and see how much you are spending. Then you can identify areas of opportunities.
Boy it was a real eye opener for one of my clients. Just by making lunch at home for two adults and cutting out daily trips to Tim Horton’s for coffee, they were able to pay off credit card debts. This then allowed them to qualify for the mortgage to buy the home they really wanted to be living in. Now they are focused on following the mortgage plan I helped them set up, so that will get them mortgage free sooner…….ps..They says thanks to my gentle reminders
Paying off your mortgage sooner means you can retire whenever you want. I used to work with a large government agency where the staff gets paid well and they will have a pension when they retire. But for the few that focused on paying off their mortgage, it gave them piece of mind that they could cut out and go do something else, work somewhere else, or simply free to retire whenever they are ready to move on to that next phase of life. It simply equals freedom of choice. Investing in you having the “senior” years of your life free to be and do as you wish.
So…if you have a goal to be mortgage free…. either long before you retire or right around retirement time, then please let me help you to set up that plan, then manage your mortgage along the way to nudge, encourage and support you to achieve your goal.
If you have not already watched the video on my blog “Mortgage Strategies – Would a Ten year Mortgage be right for you? Go back and read the blog, watch the video, then call me for your free report and annual mortgage review.
Please do your friends and family members who have a mortgage a favor, share this blog post with them. I want you and them to reach their goal…mortgage free, so they are free to go do and play whenever and where ever they want
Please email, text or call me if you have any mortgage related questions. I am happy to help.
Enjoy the sunshine Vancouver!
When socializing, networking or sitting down to discuss mortgages with my clients I am often asked, is now the right time to buy a home? My answer, it depends on the individual buying and their life plan. What are your goals? … short and long term… where do you see yourself in the next 5 years, or 10 years? Are you buying to live in the home? Whether you are buying, refinancing or renewing your existing mortgage I want you to have a strategy that helps you reach your goals and be mortgage free sooner.
Last week I had a meeting with a Debt Coach and we talked about current mortgage products, rates and some of my mortgage planning strategies that I offer my clients. She loved my Inflation Hedge Strategy and agreed that for some of her clients, now might be best time ever to lock in to a 10 year mortgage.
So while out on my long runs this week I thought I have to blog and share more information about my Inflation Hedge Strategy and the 10 year Mortgage Strategy. Please check out this video. Then Share it!
I want as many people as possible to see this video. I do not know how long this option (great 10 year rate) will be available, as mortgage rates could start rising. Will you consider sharing this blog and video? I happen to think this would be a great gift for you to share with your friends, colleagues and family members who have a mortgage right now, that is not being pro-actively managed.
Please watch the video, download the free report!
Go ahead, download the free sample report, then share this blog and video.
Post your comments, or contact me directly if you have any questions.
You won…the house is yours and now you do not qualify for the mortgage to buy out your partner……….Is this the situation you find yourself in?
I recently worked with a woman who had separated from her husband in 2008. She is living in the family home with her children and her husband is making the mortgage payments. Something happened in their dispute and along the way he started missing mortgage payments. The mortgage is in both names and the end result is that her credit score dropped significantly.
December 2011 she received the court ordered divorce settlement, which granted her the family home. This means she now has to secure a mortgage in her own name to take over the mortgage loan and pay him his share of the settlement agreement. She went to the current mortgage holder (the bank) to arrange for a new mortgage. The bank said no thank you, we won’t refinance your mortgage for you.
On paper she should qualify for the mortgage on her own. She has a fulltime job and she is receiving child support payments regularly. She has sufficient income to qualify for the loan and to be able to afford to make the mortgage payments on time. The problem here is that her credit score is significantly below the threshold that lenders rely on to determine her credit worthiness to qualify for the loan.
Protect your credit score
Your credit score is what gives you the ability to finance future purchases. If your score becomes damaged during divorce, moving on can become extremely difficult. Part of my mortgage service is to counsel you on ways to preserve and improve your credit score during divorce.
Remember, if mortgage payments are missed because your spouse has failed to make a payment, YOUR credit score will suffer too. Regardless of what your divorce decree says or what’s fair, if you have a joint debt, you’re responsible for it.
Here are some ways to protect your credit score BEFORE any payments are missed:
• If possible, close all joint credit cards immediately. If you can’t close one because there is still money owed on the account, freeze it so no one can continue to use it.
• Make sure you continue making at least the minimum payments in the meantime. Then come to an agreement with your spouse on transferring the joint debt to individual credit cards.
• If you do not have a credit card in your own name, get one now. Building your own credit history takes time, so start today!
• While waiting to sell your home or refinance it, make sure your mortgage payments are up to date, even if it comes out of your own money. This protects your credit score and you’ll likely be able to claim the funds back under court order.
• After you have moved out of the home, make sure have your name removed from the property title AND from the mortgage, so your credit score doesn’t continue to be impacted.
For this client, she was able to get approved for a mortgage with a lender who charged a fee and a higher interest rate for a one year open term. I am working with her to improve her credit score and in one year we can look at placing her mortgage back with a traditional lender (mortgage company or a bank).
I believe that if she had of consulted with me earlier in the process I could have given her some advice and developed a strategy that would have helped her to achieve her goal, owning the family home, without the last minute stress, frustration and added expense.
If you are going through the divorce process and owning the family home is one of your goals, let’s talk and develop your strategy. Call, text or email me today….. Karen@Mortgagecentrebc.com 604-726-9550
Debbie Burgin is rebranding divorce one woman at a time. If you would like more information about Debbie Burgin and her divorce coaching services, please go to her website The Joy Of Ex
Debbie Burgin: This is Debbie Burgin at The Joy of Ex, and today I’m interviewing mortgage broker Karen Boies. Karen is a Vancouver mortgage broker who specializes in…?
Karen Boies: I specialize in working with women in transition, so women that are going through divorce that need some additional education and support in that planning process.
Debbie: OK, so that said, when I was going through my divorce, my first thought was, where am I going to live, where are my children going to live? But I also thought, even though I had a house, I thought, I have no money to pay the mortgage on this house, and I can’t afford to move. So, what are the implications with regard to women who are divorcing? How do you help them decide those things? Can I move, can I afford to stay, what are my options?
Karen: Absolutely. So, what I like to do as a mortgage planner is sit down and kind of work out a strategy or a plan. So we look at where they are right now, the home, the job, whatever income that they’ve got coming in. Hopefully their spouses, if there are kids involved, they’re paying child support, maybe they’ve agreed to pick up some of the mortgage payments. And just sort of look at the financial situation as it is right now, and then look at it based on what the woman thinks she’s going to end up with. You know, we know under the courts that they’ll have to pay a certain amount of child support, so we’ll look at that, whether or not they think they’re going to get any alimony, and then look at the scenario if they sell the house, and how much equity they might end up with out of that house. And now once I have that information, I can show them what they’ll qualify for in a mortgage to buy their own home, if they have to sell and move. Or alternatively, we can look at the option of using the child support, the alimony, if they think they’re ultimately going to end up with alimony. And then the solution of them staying in the home and buying their partner out.
Debbie: So, what would you say are the first steps? Let’s say I’m getting divorced, so I know that my husband is heading out the door, I’m moving out, whatever the circumstances are. I’m going to end up having to consider where I’m going to live. Where are my children going to live? What are my first steps?
Karen: Well really, I think that the first steps are…hopefully the couple will have a conversation when it comes to what’s in the best interest of the kids. So if the relationship is ending, hopefully he wants you to stay in the house and you will keep your financial situation as if you were still living in the house and keep paying the bills. But what I tell women is, if you don’t already know whether or not you have a credit score, you need to make sure that you have a good credit rating. And then after that, all credit cards or bank cards that you have in a joint name, if possible you need to close those so that you’re not continuing to accumulate debt on them. Or if you can’t close them, then you need to freeze them.
Another thing you need to do is, if you are getting child support or any alimony, you need to keep a record. It’s surprising how many people think it’s OK to accept cash and not deposit it in the bank account. Like, keep 500 bucks cash and they don’t put it in the bank account. Well, when everything gets settled and you get a separation agreement, you’ve got to have a record that you’re getting this money. So if they are paying you cash, you need to deposit it so that there’s at least a 90 day history of you receiving this money.
Now, I can use it to qualify you for a mortgage. Just to let you know, I get paid by the bank in most cases. I mean, if we have to use a private lender to fund the mortgage for you, they could charge a fee. However, if I get you financing at a traditional bank or a traditional mortgage company, they’re going to pay me for bringing the client. So, I work for you to help you reach whatever your goal is, and then after the mortgage funds, I stay in touch with my clients to work with them to continue to work on things like budgets, optimizing their mortgage so that they take advantage of it and pay it down if they can so that they’re developing more equity for themselves for going forward.
Debbie: Awesome. You are in Vancouver.
Karen: Yes.
Debbie: Do you do mortgages outside of Vancouver?
Karen: Yes.
Debbie: OK.
Karen: I’m licensed in the province of BC, so I can do mortgages throughout BC. I’ve done one for family members back in Ontario and New Brunswick, so I can do a one off like that. And we just do it through Skype conversation and email and texting if we need to.
Debbie: How do we get hold of you?
Karen: My name is Karen@mortgagecenterbc.com, and my website is KarenBoies.ca.
Thank you for watching the interview. If you have any other questions, please call Karen at 604-726-9550
Oh the times, they are a changing! (to be referenced later, stay tuned)
Never at any point in history has so much information been available online to us as customers. Whether we are planning a vacation, securing a mortgage or buying a new car, most people are doing their research online, long before they make the final buying decision.
Recommendations and Online Reviews matter when you are in the business of providing a service or product. It is how business is done. Examples: TripAdvisor, Yelp, Google Review
I receive testimonials from my clients and referral partners all the time. I am grateful that they take the time to let me know how I made a difference in their life. Google makes it easy for you to write a review and ensure your experience is shared with those who are thinking about doing business with me in the future.
SO now I have a big favour to ask of YOU… Will you write a Google Review for me?
This week one of our lenders sent an email to remind us how they look at a mortgage application for a client. They call this the 5 C’s of Credit. I thought you might find it interesting.
“Remember it’s not how nice or good they are, but whether they qualify for the loan.
Character – Based on stability… Time at current job/residence.
Collateral – Marketability of real estate in case of default.
Capital – Funds invested in purchase or equity in home for refinance.
Also reflects your ability to save / net worth.
Credit – Evaluates your ability to maintain your obligations and determine how well you live within your means.
Capacity – Whether you have the means to support the debts. “
You will notice they did not say it is about how long you have had your finances with that institution or how well you get along with the bank personnel.
Sometimes clients tell me they are concerned that if they do not get their mortgage with their current financial institution the bank will not approve them for a loan in the future. This is simply not the case. If you have a stable job, pay your bills on time, manage your debt by living within your means and positive net worth, you will be able to get a loan at any of the many financial institutions in Canada.
Look out for your financial future. Make financial decisions that are in your best interest, not the banks!!
If you are not sure what is your credit worthiness and want a financial review, call me. I will sit down with you and one of our financial planner partners and together we develop your financial plan and mortgage plan.
“The content and opinions expressed are solely the expressions of the writer. They do not represent the views or opinions of Mortgage Centre Canada and The Mortgage Centre – City Wide. Neither Mortgage Centre Canada nor The Mortgage Centre – City Wide warrant the accuracy of what is presented.”
I am frequently entertained by the musing of @crunchycarpets on Twitter. We banter back and forth sharing a giggle and some intellectual property. Then one day she invited me to be interviewed for her website Wet Coast Women. I was excited about the opportunity to share my ideas about mortgages.
Honestly, I am passionate about helping women understand what it is they need to know about building a firm financial foundation and that includes knowing their way around securing mortgage financing.
Wet Coast Women was created by Kerry Sauriol of Crunchy Carpets ‘fame.’ The idea behind the site is simple..a place for all the women bloggers to mix, meet and promote their own sites and places of work and creativity.
Check out her site and read the article she posted after I answered her great questions.
Karen Boies
Mortgage Planner
The Mortgage Centre-City Wide
604—726-9550
Karen@mortgagecentrebc.com
“The content and opinions expressed are solely the expressions of the writer. They do not represent the views or opinions of Mortgage Centre Canada and The Mortgage Centre – City Wide. Neither Mortgage Centre Canada nor The Mortgage Centre – City Wide warrant the accuracy of what is presented.”
When I speak to prospective clients they ask me what information will they need to prepare, in order to complete their mortgage loan application. I have prepared this blog article as I thought it would help you prepare for our meeting.
The mortgage loan application requests information about the type of mortgage loan you are applying for, as well as your personal financial situation.
To fill out the Mortgage Application , you (and the co-borrower, if you have one) need to provide the following information:
Employment history – I require 3 years history of where you work, (have worked) including address, your job title and income
Income – how are you paid?
• Hourly
• Salary
• Do you earn overtime or bonuses
• 100% commission
• Self employed
• Permanent pension income
Where do you live now – I need 3 years history of where you live (have lived). Do you rent? Or Own?
Do you own your current property? I need the details of the residence plus the information on the current mortgage holder.
Debts – What are your current debts / liabilities. Your own debts plus any you might have co-signed
• Credit cards
• Bank loan, car loan or lease.
• Alimony or child support obligations
• Any bankruptcy history
• Any legal actions you are involved in
• Foreclosure history
Citizenship status – there are a variety of lending programs depending on if you are New to Canada, permanent resident, non-permanent resident, U.S. non-permanent resident
Assets
• Current value of RRSP’s
• Stocks & bonds, mutual funds
• Tax free savings
• Savings
• Value of the automobiles you own
• Value of other major assets (big boat)
• Value of other properties you own
Down Payment – What is the source of your down payment and closing costs. How much will you put down?
• Will you provide it from your own savings?
• RRSP’s
• Receiving a Gift from your immediate family member?
• Borrow it from your line of credit?
Paperwork – What is the minimum you should have available when we meet?
For our initial meeting it is ideal if you have your last two years of income tax returns and/or notice of assessment and a current paystub. I want to accurately establish what is your gross income, as this will avoid stress and frustration when you have found the home you want to buy.
The reality is that in order to do my best for you as your mortgage planner, to ensure you get approved and I get you the best available mortgage terms, conditions and rates, I need to KNOW YOU. Once I know you, your needs, goals, financial background, I am in a better position to help you reach your goal of owning and investing in your home. I will advice you of your options and the best mortgage rates, terms and conditions available to you.
If you don’t quite qualify today, I will use the information you shared to create a plan of action so you can meet your goal in the near future.
You can get started now, by accessing our secure Mortgage Application
If you have questions about planning for your mortgage or you are ready to get the process started, call me 604-726-9550. I look forward to helping you achieve that goal!
I recently had the opportunity to work with a client who really wanted to take the step to buy her own condo instead of paying off her landlord’s mortgage. She had completed the application process, then after checking her credit rating I found out she had previously declared bankruptcy.
That prior bankruptcy adversely affects her ability to get a mortgage on her own today. She has a good explanation for the bankruptcy. She suffered a life threatening illness and did not have a job where she was paid disability benefits. While she recovered from the illness, she did not have an income and could not pay her debts. At the time she was younger and did not understand the ongoing impact declaring bankruptcy would have on her ability to obtain mortgage financing. Today, she is healthy and has an established good paying career/job and pays her credit card off each month and on time.
Because of her prior bankruptcy the mortgage lender requested a guarantor. Luckily her parents were more than happy to help out and they were great candidates to be guarantors.
I thought a quick blog on the role of guarantor would be helpful.
A guarantor is a person who promises the lender they will repay a debt if the principal borrower should default on the mortgage repayment commitment (fails to pay). A guarantor will be requested by the lender, if the principal mortgage applicant is unable to qualify for financing on their own. Examples of when this could happen are insufficient employment history or a history of poor debt repayment.
The guarantor does become part of the mortgage application and approval process. They will have to disclose their assets, liabilities, income and a credit check is done. Then the lender looks as the complete picture of the applicant and their guarantor.
Once the application is approved, the guarantor will have to sign the mortgage documents including the mortgage commitment, confirming their obligation to the lender that they will be responsible to pay this mortgage, should their daughter fail to do so.
The guarantor should obtain “independent legal advice” from a lawyer who is not part of the real estate transaction so they know what their responsibilities are should the primary debtor default on the mortgage repayment. The lender (creditor) has no rights against the guarantor until the primary debtor defaults on the mortgage payments. Should the primary applicant miss one payment, the lender could enforce the guarantee and take action to have them pay the mortgage payments.
My client has sufficient income to support the mortgage on her own. Once she demonstrates at least 12 months of paying the mortgage payments on time and keeps her credit history in excellent condition, the lender will review the file and consider removing the guarantor.
I am happy to be the one to help you through the home buying and mortgage planning process. When you or someone you care about, is buying a home, call me 604-726-9550! I want to help and make this a positive experience for all my clients.
