I have had the podcast transcribed and posted here:

I’m Doctor Duanita and with me is Karen Boies, an independent mortgage planner who specializes in helping women going through divorce with their mortgage planning needs. Karen’s mission is to help women going through separation and their divorce to achieve their goal of home ownership on their own. Welcome, Karen.

Hi. Thank you so much for having me, Doctor Duanita.

Oh, you’re very welcome. I’m glad you’re here. You know Karen, what are the things that I really do admire about you and your work – is your philosophy on financial empowerment for women and I want to say a quote that I heard you not only say but I’ve seen you write down. This is quoting you, “I believe that when a woman has a solid financial foundation she can more easily make the tough decisions that are right for her and her family as she moves forward into the next stage of her life.” Now Karen, can you tell us how you came to this wisdom? I really love that philosophy. How did you get there? How did you know that?

I know this from personal experience. I grew up in a home where my father was an alcoholic and my parents had five kids and so they struggled. They struggled to raise the kids and provide for us. And when I left home at eighteen years old, I walked out the door and I said that I was done with living in that lifestyle because I knew that my mother certainly had to tolerate a lot of things that maybe she would not have put up with had she had more of a solid financial foundation behind her. And then as time went on, I developed a successful career for myself and then I got married. I didn’t get married until I was thirty-eight years old and I found myself in a relationship unfortunately repeating some of the patterns that I had lived with when I was growing up and so I was thankful that I had learned good money management skills, I had savings, I knew how to take care of myself financially. I had set up our financial home so that he had his own bank account, I had my own bank account and I managed our bank account for our joint family income taking care of paying the bills, the mortgage. What I knew was that I could evaluate the status of my relationship with my husband and know that it wasn’t meeting my needs. And I knew that I can leave because financially I could afford to look after myself. I wasn’t “stuck there” because I had no option – I couldn’t leave because he managed all the money and he, therefore, had all the control in the relationship. I can leave and make the right decisions for me because it wasn’t working, it wasn’t meeting my needs and financially, I can afford to move on and start a new life over for myself and that’s certainly what I did so, I learned it from experience.

Yes. And really, what you’re saying is that women in particular do have unique needs in the area of financial self-care compared to men. Can you elaborate on that? What are the differences for women? What are the unique issues for women in terms of taking care of themselves financially? The one that you come across when you’re working in this field, specifically with women going through divorce.

Certainly, I work with men and women when it comes to mortgage planning but specifically, in working with women going through divorce, if I’m dealing with a couple who don’t have any children then typically there isn’t a significant difference because typically they do maintain their career and continue to work. But the families that I work with, the women that I work with that have made a conscious choice to stay home and raise their children; certainly financially they’re going to have to re-establish their careers. Maybe they begin working part time and they need to ramp it up and work fulltime and that may mean some ongoing education and support. So they’re going to rely heavily on their ex-partner, ex-husband to support them financially. They’re going to rely on that income, make sure that it comes to them so that they can afford to look after their children as well as provide housing. Maybe they put their careers on hold although they may have worked, but they have not done what they needed to do to pursue the career goals that they wanted for themselves and therefore they’re relying on less financial income. Again now that they’re out on their own and they’re having to look after their children, rely on the financial support from their spouse and that financial support, when it comes to qualifying them for mortgage, there’s a variety of lenders out there that I deal with and they have different policies as to how much of that income they’re going to use in qualifying the woman for the mortgage. Of course, economically, I believe that in our society, generally speaking that women are not trained to look after their financial health as well as men are. Within our society, men are supposed to be responsible breadwinners and look after the family and therefore have that financial knowledge. In some homes women just leave it to the man to take care of all that so here they are leaving their home and they haven’t paid attention to what’s going on. Maybe they haven’t had their own credit identity for example – all of the mortgage, the car loan, the credit cards are, all under the husband’s name and they haven’t established their own credit rating, so it’s very difficult in some cases for them to get out there and re-establish themselves financially as well as in the career and starting over in their own home. They need support in all of those areas.

Yes, there are those kinds of unique issues. No doubt about it. Now, I know that you created an information book called Divorcing Your Home 6 Things You Need to Know Before you Sell. And to the benefit of our listeners, could you briefly outline the six things that women going through divorce need to know before selling their home?

Okay. I would love to. So we know that you need to make a decision on whether or not you will stay in the house or your spouse will stay in the house or you need to make a decision on whether or not you’re going to leave the family home and start over and that is going to be a very difficult decision. You’re going to need to evaluate whether or not you can afford to buy out your ex. Again as I said earlier, there are different financial implications to that and so you need to look at whether or not you can afford to buy your spouse out and you maintain the home. You need to make sure that if you’re getting child support, that you maintain official records of that. I’ve had a number of experiences where women are being paid cash by the spouse while they’re going through the separation agreement process and then when it comes time for us to prove that they’re actually getting the ongoing support from the spouse, then they don’t have an official record for it. They need to put themselves in full control of the mortgage payment as soon as possible. If they’re staying in the home, they need to make sure that they take control and ensure that those mortgage payments are being paid on time. Unfortunately, when couples are going through divorce there’s often a fight over the money and that has a negative impact on the credit rating of both parties and so for the women I encourage them, they take control of that and make sure that they’re getting the money and that you’re making sure that the payments are made on time. You need to protect your credit score. Again, your credit score gives you the ability to finance all of your future purchases, not just buying a home but if you want to buy a car, anything – get a credit card, you need to make sure that your cutting up those credit cards that are in joint name so that you’re not held accountable if he doesn’t pay the bills on time and you need to make sure that you’re overall protecting your credit score. And then you need to consider how will you finance your next home. As I talked earlier, different lenders have different policies around looking at child support and tax credit and the other sources of income that you have beside just what you’re doing for work. Those are just some of the areas that you need to look at when making the overall decision around whether or not you’re going to stay in the home or whether or not you’re going to move on and start a new life with your family and you’re new home.

Great. That’s really helpful. If the listeners wanted to get a copy of your book, where would they go to, Karen?

Well, they could email me. Do you want me to give you my email address now or would you add it?
Great. I’ll add it at the end then. Give it to them now as well. Okay. So that’s karen@mortgagecentrebc.com. They can call me at 604 726-9550. They also have the ability to send me a message by accessing my website at karenboies.ca

Okay. And what about your Twitter and Facebook? I know you’re active in social media and that you love that medium. How will they connect with you there, Karen?
Okay. On Facebook, I am mortgagefordivorce.karenboies.
Boies is spelled B-O-I-E-S, right?
Correct.
Okay. And twitter.com – karenboies, as well.
Right.

Now Karen, I really want to thank you so much for sharing your knowledge and experience with us today. Is there any other words of wisdom that you want to give to women going through divorce who are facing mortgage issues?

Absolutely. I think it’s most important that you get independent advice and yes, I’m a mortgage broker and I’m independent and so I’m going to recommend what best for you, it’s because I believe in it. Because there are so many options that are out there, for an individual that they may not know about. Some people think that they need to rely just on their bank and that their bank will take care of them. I haven’t seen that. I have dealt with women who went direct to their bank and they were discouraged after their meeting with the bank advisor and yet we sat down and evaluated their strategy in some case, they didn’t have one. So I worked with them to ensure that they have an overall strategy and approach and so I highly recommend that you know, call me. If not me then have a friend recommend them to an independent mortgage broker so that they can ensure that they have a strategy and that they’re moving forward from that stance as opposed to simply going on emotion.

Right. I guess it would be important, like because of these issues there are some specific things that mortgage brokers and banks need to know about women going through divorce, about the reality, things like child support, child tax credit, etc. So it’s probably isn’t just going to anyone but somebody who really does know the ins and outs of what qualifies and what doesn’t and what kind of paper you need as verification, etc. It’s probably wise to really go to somebody who specializes in divorce.

Absolutely. I, again, come up with different scenarios all the time because everybody’s financial situation is different and their divorce process is different and hits little glitches along the road. An example was that last fall, I was working with a woman, she had come to me a year in advance and we were going down the passage. She was going to move out of the house and then finally just in a brief conversation that we had, I brought up like, “Have you considered speaking to your parents about them co-signing for you so that you could stay in the house?” Because she had the living in the house and she was making the mortgage payments and she was occasionally getting support from her husband. She was going through the process of getting court order to ensure that he was going to continue to pay. So she went and she spoke to her dad and he was full time employed, their home was free and clear and he was more than happy to co-sign for her. She really wanted to stay in the home that’s where the children had grown up, that’s where they have gone out for school, they were doing their sports activities, her job was just down the street, she could walk to it. Her whole community was there. She had good valid reasons why she wanted to stay there. But she was going down the path of eventually going to have sell the house and move on and she was dealing with me to get qualified for mortgage to buy something new, she was going to take the equity when they sell the home. In the end, mom and dad co-signed for the loan and as long as she can continue to make payments for one year without any problems, then the bank will release her parents as co-signers. At the end of the day, she was so happy with that outcome.

Wow. Great. Great. That’s the great thing about people working with you. You’ve seen so many people go down that path that you know all the various options that sometimes you could just point out something that would be obvious but not obvious to somebody who’s in the situation.

Exactly. And again, if you just walked into the bank, tell them your direct story, I think they don’t really have a vested interest in looking at what all the possible options are, things for you to consider. There are times that people just call me, women call me, we have a conversation, review all the different options. At the end of the day, they now have a strategy that they can work with and that they can take that into consideration when they are going through the negotiations in advance. We sit down, we look at it and we say if this scenario worked, that you get what you think you’re going to get at the end of the day when it comes to ongoing financial support for example from your ex-husband, for child support say for alimony support, we can look at it, we can say this is what you’re going to qualify for a mortgage, can you realistically see yourself continuing to make that size of a mortgage payment? Is that the lifestyle you envision for yourself? And if that works for the woman, great! If not, then we can develop a strategy that says, look, I know you want to stay in the house but at the end of the day when you look at what your overall goals and dreams and hopes of your brand new life as a single woman again, you know, you might be better off to downsize . Buy yourself a townhouse and move there. Continue and create a brand new life for yourself and this one will allow you to make the mortgage payments and give you the opportunity to pursue those other things. I’ll be honest, I do look at and try to establish a relationship with these women to inspire them to look beyond what’s happening for them right now. Maybe they didn’t make the decision to end the divorce, maybe their partner did and they’re not really happy about it. But I try to encourage and inspire them to look beyond it and look at some of the other things that they want to achieve for themselves. And again, taking the full financial picture and putting it into that perspective.

Yes, because your job will be so much more than just simply the numbers and finding ways to help them because in this situation, first of all you’re probably dealing with people where there’s tons of emotions running through; grief, shock, loss as well as guiding them through to help them see through all of that immediate emotions to what is it that they do want in their new life, to make that start with a new home on a path that can connect with that vision.

Absolutely, I’m dealing with the woman right now who’s going through divorce from her husband, she’s found out that he was doing cocaine. She’s been working hard for the last four years in her career was making money and it seems like he never ever had any money. She was giving him money all the time and had no idea of what was going on. Eventually, she found out that he was doing cocaine and so the relationship ended and now they’re going through the divorce process and figuring out who gets which home. They own two homes together and there are moments when her and I have conversation where it’s really clear that she’s angry and this is about winning and honestly I do try to come back to the original conversation that we had and remind her what she talked about that there were so many things that she dreamed of doing in her life that she was not doing it in her marriage under those circumstances and reminding her that she can fight about this and the lawyers will end up with the money and so at the end she’ll win and she’ll lose and is that what she really wants for her future. And she thanked me for bringing her back down and reminding her that while she’s going through an emotional process right now, finances, money is involved and hasn’t she already given him enough of her money? Isn’t it time to just work this out and be clear on what her goals are, what her strategy is, what does she want to achieve and move forward and stop fighting the battles about – yes, there is a battle, there is anger, there is pain but deal with it and don’t keep throwing all the money at the lawyer. Leave some for her so she can move forward and do that goal, that dream that she wanted.
Go ahead. It’s all about that solid financial plan and then move forward and make those decisions that help them achieve their goals, their dreams that they sat at home and thought that what they really wanted for themselves or in that time when they’re just sitting alone, what do they want? What kind of life did they want? It’s an opportunity to learn from this experience and move forward and make it better for themselves. I try to encourage them to do that.

Well Karen, you have to be part mortgage broker, part guide. Really serious lifestyle just helping them to stay on track and taking the high road so that they can go through it as smoothly and easily as possible towards their goals to a better life. Really.

Absolutely! Inspiring them just like I would my friends.

Yes, just like you would your girlfriends.

Exactly. Just as I would with my girlfriends.

So, Karen Boies, thank you so much for sharing with us today and inspiring all of our listeners who might be going through a tough time right now to know that there is help out there and that there are people out there specializing to help you make choices around mortgage and home that can really put you on path to a higher vision and to your new life as a single woman. Thank you very much Karen for being with us today.

Thank you so much for the opportunity. I love having the opportunity to share my business with other women and encourage and inspire them to live their life.

Absolutely. I’m very grateful that there are women out there like you who take the interest to help people, especially women in that kind of time of need. It’s a very serious situation when you have a marriage and your life is all of a sudden shifting.

Now remember, any of you out there who are interested in connecting with Karen and learning more about her and about the issue of mortgages through divorce, you can find Karen online at www.karenboies.ca. Again, Boies is spelled b-o-i-e-s. You can also reach her through Twitter, twitter.com/karenboies and Facebook, mortgagefordivorce.karenboies as well, feel free to email her at Karen@mortgagecentrebc.com.

Thank you all for listening today and may your path through divorce and life change situation be smooth and easy and may you find those professionals who are meant in the world to help you. Bye for now. This is Doctor D. Enjoy!

It’s been almost 4 years since I walked out the security doors to a brave new world as a self employed, independent business woman. Each day I wake up free to create a GREAT DAY. I get to make a difference in the lives of those who seek out my help with their mortgage purchase.

This week I received an update from one of my clients on their move and along with the update came this message:
“Once again I cannot thank you enough for all you have done to assist us through this process. If we had not been subject free on our offer I’m quite certain we would not have been successful in purchasing our new home. We have you to thank for that Karen and we are truly grateful for your help. Of course, will be anxious to pass your name along to friends who may benefit from your services. Sharon M. North Vancouver“

This simple thank you fills me up with great joy and pride. I am truly grateful for the opportunity to help this family make one of their biggest financial decisions, with the confidence they needed.

The clients had made other offers but they had did not have the information they needed to make a subject free offer. So they got to the point where they had to move out the home they just sold, without having a new home to move to. Pretty stressful for most couples with 2 young children.

They had been working with their bank – one of the big 5. The banker did give them a “rate” and “pre-approval amount”. The banker not explain in detail the process – what to expect along the way, what the closing costs were, what the closing process was and much more.

I took the time to understand what was important to my client about buying their new home and securing the right mortgage, along with understanding their long term plans. I also made sure I knew my client from the point of view of what the lender would expect. I helped educate my clients so when we were done with this process, the clients had the confidence to make the subject free offer for their new home.

They are happy and I am happy for them….another great day as a mortgage planner.

I’d love help you too. Give me call 604-726-9550

Congratulatons! It is an exciting and sometimes turbulent time when you make that offer to purchase and then wait for the final approval for your mortgage loan.

I prepared a video that I send to my clients when I get the good news that they have found the new home they want for themselves and their family. I walk you through the process from when I submit your application to the lender for approval, until you are the owner of your new home.

In the video I refer to a document that I’ve called, What Happens Next. I want to share this document with you, please send me an email Karen@mortgagecentrebc.com or Facebook http://www.facebook.com/MortgageForDivorce.KarenBoies I will forward the document to you.

If after watching the video you have any questions, please call me 604-726-9550 or send me your questions via email or Twitter @KarenBoies.

Thank you for viewing the video and leaving your comments.

“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.

Karen Boies Mortgage Planner
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.”

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.

Wet Coast Women

Happy Spring!

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.”

1. Determine how much you can afford. Based on the combined family income, your down payment, existing debt, regular expenditures and other key financial information, I can help you determine how much you can afford to pay every month for your mortgage payment, within your budget. I will also help you determine the price range that can shop for. While you shop, I will hold a mortgage rate for you.

2. Team up with a real estate professional. Finding a real estate agent to help you search for your dream home is important to the home buying process. The best real estate agent will be a combination of a personal advisor, consultant and negotiator. This expert will show you the homes that match your criteria, guide you through the home buying process, and negotiate the best possible price for your home. Once you have an accepted offer I will work closely with your real estate agent to obtain the necessary paper work related to the property, for loan approval.

3. Make an offer. When you have found a place that you would like to call your own, your real estate agent will help draw up an Offer to Purchase to present to the seller. This legal document specifies the price, the closing date and any conditions.

4. Arrange the home inspection. Many buyers consider including a home inspection as one of the conditions on their Offer to Purchase. A professional inspection is a good way to uncover any major problems with the home. If the home does not pass the inspection, you can adjust or withdraw your conditional offer. A home inspection is not normally required by the lender for mortgage approval.

5. Get the mortgage approved. With a copy of the Offer to Purchase, MLS Listing, Property Disclosure statement and your financial information (proof of employment income and down payment) I will submit your application to the mortgage lender that we have selected. The lender will qualify your application and complete the valuation on the property you have purchased. Mortgage default insurance gives you the ability to buy a home with a down payment of less than 20% of the purchase price. It is added to the mortgage loan amount.

6. Retain a lawyer or notary. It is important to hire a lawyer or notary that specializes in real estate transactions. The solicitor will handle the legal transactions to transfer the title of the property from the seller to your name.

7. Get property insurance. You will need to purchase property insurance that protects your home against fire and other damages. Once you have a policy in place, you will forward a copy to your solicitor and your mortgage lender.

8. Check the details. Once the lender approves the mortgage, I will provide you a letter to confirm the financing. If you are satisfied that all conditions have been met you can remove subjects on your offer and pay the applicable deposit to your Real Estate professional, which is held in trust. The deposit is part of your down payment. With the deal finalized and the financing in place, your solicitor will search the title and check whether there are any unpaid property taxes. Your solicitor will arrange for a survey to be completed, if necessary.

9. Complete the paperwork. A few days before the deal is set to complete, you will meet with your lawyer/notary to review, sign and get copies of all your documentation. At that time you will also provide the remainder of your down payment, pay legal fees, and any additional costs such as property transfer tax, and any prepaid utility expenses for which the seller should be reimbursed, that are due on closing.

10. Pick up the keys. On closing day, your solicitor and the seller’s lawyer will exchange documents and cheques. Your solicitor will register your new home in your name with land titles office. When these tasks are complete, you will get the deed and keys to your new home. You can arrange to move in on possession day!

If you are ready to get started on investing in your new home, call me today 604-726-9550 and let me start working to help you achieve that dream!!

1. Property Tax. Many of the services you will enjoy in your new neighbourhood, from parks and recreation facilities to road maintenance and schools, are funding in part by municipal property taxes. Rates vary widely from region to region and home to home. Annual taxes can top several thousand dollars in urban centers. In most municipalities you pay your taxes on July 1st. If you are living in your home you qualify for the home owner’s grant which you must apply for each year. Some municipalities will allow you pay in instalments. Your mortgage lender may provide the option to combine your property tax with your mortgage payments.

2. Energy Costs. If you are used to keeping the lights on and the thermostat up because utilities are included in your rent, you will have to pay attention to these costs. Budget to cover monthly gas and electricity bills, which fluctuate with the seasons. B.C. Hyrdo will allow you to pay monthly based on an average of the past years usage. Your Real Estate Professional can ask the home’s seller to confirm what the past costs are.

3. Phone, Cable, Internet. The costs of being connected can easily add up to a copy of hundred dollars a month. Moving into a new home might be a good time to consider whether you need a land line and a wireless phone, for instance. Maybe your service provider has a good deal on bundling the services.

4. Home Insurance. Protect your home, its contents and your property against damage, loss or liability. If you have a mortgage on your home your lender will require that you have fire insurance coverage.

5. Municipal Services. Some municipalities charge fees for services light water or garbage removal. For example, home owners in some larger urban centers pay $150 to $235 a year for curbside collect of garbage, recycling and compost.

6. Home Maintenance. Plan to cover all the occasional costs to keep your house in working order, such as changing the furnace filters, carpet cleaning, clearing your easevtroughs, touching up the interior or exterior paint, lawn care equipment.

7. Property Clean Up. Consider outdoor areas that may need tending to, such as a wooden decks, fences, gardens and lawns. Even when you do the work yourself, consider budgeting at least a few hundred dollars seasonally for items like snow removal equipment, wood sealant, landscaping supplies and plants.

8. Repairs. These are larger, less frequent expenses like replacing the roof, furnace or appliances. Housing experts recommend setting aside 1% to 3% of the value of your house each year – a small amount $1000.00 or every $100,000.00 to ensure you are ready for the extraordinary expense.

9. Fuel or Transit Costs. If you will be commuting a longer distance to work, consider whether you will face higher costs for fuel, insurance, transit and parking costs.

10. Monitored Security. Maybe the home you are buying already has a security system installed. If you opt for home protection, monitoring can cost $20 or more, depending on the plan

The ongoing costs of owning a house can add up. I can help you plan ahead to manage these expenses along with arranging mortgage financing you can be comfortable living with.

We have access to the widest variety of lenders – to find the right solution for you.
I am an expert at helping you achieve your homeownership dreams! Access your best options, call or email me today.

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!

The first thing to keep in mind is that real estate in a recession is a long-term investment, as opposed to the short-term “flipping” of boom times. Plan on keeping the property for 2-5 years and watching its value grow steadily. Be sure it is in an area where people want to live and accessible to amenities like schools, shops and transit. Don’t buy the most expensive home on a modest street; instead buy a modest home on an expensive street. This will make your property more desirable to a greater number of tenants, thus, they’ll be willing pay higher rents and you’re more likely to have positive cash flow after expenses.

The key to a successful revenue property investment is making sure the numbers work. As your mortgage advisor, I can provide no-charge advice and assistance. I may be able to access the equity in your current home and/or arrange affordable financing through my stable of specialized lenders. By keeping your interest costs and payments low, we can help ensure that your rent will cover the mortgage. Talk to me today and develop your property investment plan.

Credit Score
Your credit score is a judgment about your financial health, at a specific point in time. It indicates the risk you represent for lenders, compared with other consumers.

There are many different ways to work out credit scores. The credit-reporting agencies Equifax and TransUnion use a scale from 300 to 900. High scores on this scale are good. The higher your score, the lower the risk for the lender. Lenders may also have their own ways of arriving at credit scores. In addition, lenders must decide on the lowest score you can have and still borrow money from them. They can also use your score to set the interest rate you will pay.

Which parts of a credit history are most important?
35% – Your Payment History
30% – Amounts You Owe
15% – Length of Your Credit History
10% – Types of Credit Used
10% – New Credit

Top 5 tips for improving your credit
1. Pay your bills on time. Pay your bill in advance of the due date, ensuring it reaches the creditor before the payment is due. Pay off debt, don’t move it around. Owing the same amounts, but having fewer open accounts, can lower your score if you max out the accounts involved.
2. Contact your creditors as soon as you know you will have a problem paying bills on time. Try to work out a payment arrangement and negotiate with them to keep at least a portion of the late notations off of your credit reports.
3. Reduce the number of active credit cards to 2 or 3 accounts. Revolving credit includes department store cards, grocery store cards and gas cards. Establish a minimum of 2-3 trades with good repayment history for 24 months
4. Keep account balances within 50% of the available credit limit – Keep your credit card balances low. High debt-to-credit-limit ratios drive your scores down.
5. Pay or satisfy all outstanding collections and judgements

It is advisable to avoid applying for credit and having your credit report checked unless you have a genuine need for credit. The risk to consumers with a lot of activity on their credit report over a short period of time is that a lender may interpret this as a sign that you are in financial difficulty or taking on more debt than you can manage.

Your credit score is important and you need to take action to make sure that you will be able to borrow money when you need it. If you currently have a low credit score don’t be discouraged. Take action. Start doing the things that will cause your credit score to improve. Be consistent and before you know it you will have better credit.

When you are ready to pursue home ownership, call me for your mortgage! I pull your credit report once and submit it to the lender. If there are some issues on the report that needs to be addressed, I can guide you through that process.

Enjoy the summer!
Karen Boies, Mortgage Specialist 604-726-9550

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.

If you have any mortgage related questions, please call me or email me at Karen@mortgagecentrebc.com

Karen Boies Mortgage Planner

Good Morning Tom, Good Morning Sheri,

The Minister of Finance recently announced changes to high-ratio government guaranteed mortgages. I am talking about a mortgage where you are putting less than 20% down and the rate used to qualify you for a VRM.

This week I worked with a client who has been impacted by these changes.  She had full intentions of securing a variable rate product for her first ever mortgage. She had done her research and was confident in her financial decision.  The only problem she went out and committed to a new car lease before buying the home.

Prior to April 19, the lender would have used their 3 year rate to qualify her and she would have qualified for the variable rate product.  With the higher qualifying rate, today it is 5.99%, she no longer qualifies for a variable rate mortgage.  She has been approved for a  5 year fixed rate  mortgage of 4.39% which is a great rate, that’s  2.49% higher than the VR.

If you are thinking about buying a home, do not go out and buy or lease a car! It could cost you more than you had planned!   Call me first,  let’s develop your mortgage plan !

This is Karen Boies for Radio Real Estate

I am a mobile mortgage planner in Greater Vancouver. I am honored to work with you to help you understand the home financing process! I want to help you make financial decisions that you are comfortable with and that save you money in the long run. If you have any mortgage related questions, please call me at 604-726-9550 or email me at Karen@mortgagecentrebc.com

09.mortgage centre-karen boies jun 5

It is very important to remember that the lender reserves the right to review all applicant’s financial status right before closing on your mortgage.   (They can verify your debt status by pulling a new credit bureau report)   If there is a substantial change in your financial status, the lender could refuse to fund the mortgage. This would normally only happen if you could no longer “qualify” for the mortgage based on the debt servicing ratios they rely on.

I recommend you AVOID the following once you have bought a home and are waiting for the mortgage to fund:

• Do not quit your current job
• Do not reduce your income (go from full time to part time, take a lower paying job with the same company)
• Do not go out and buy all the new furniture and appliances for your new home and put it on a “do not pay for a year account”
• Do not enter into a new lease for that car you “have to have”
• Do not rack up credit card debt
• Do not co-sign a loan or mortgage for anyone else
• Do not stop paying your current debts or pay late (including the current mortgage on your existing home)
• Do not spend the money you saved for your down payment and closing costs

I specialize in working with First Time Home Buyers and New to Canada purchasers because I love to educate and support them through the home buying and financing process.  

If you or someone you care about is in the market to buy a home, please contact me @ 604-726-9550.  I will guide you so that you can easily determine which mortgage financing option  will work best for your investment decision.

The wife is already seeing herself living in their new home, enjoying the convenience of in suite laundry, hardwood floors for her baby to crawl on and additional living space. Her husband is still thinking about the contract details, asking me many great questions about the next steps in the home buying process.

They have an accepted offer and we are going through the process of getting all the documents in order to meet the lenders conditions for financing approval.  They have already prepared the 5% deposit cheque to be given to their Realtor “In Trust” when the subjects are removed.  He wanted to know if he gets that money back? If not where does it go and when do they pay the rest of the down payment? When do they get the keys to their new home?

I explained that once the lender is satisfied  they have the employment income to support the mortgage loan, the proof they have the down payment from their own savings and approval is provided by CMHC for the default loan insurance, I will give them a letter to confirm they can remove the “subjects” for financing. At that point if they are satisfied with the other conditions they identified (home inspection) they will sign a contract addendum to remove the subjects.  Once they remove the subjects they are bound by the contract and they will be buying that home.  They will provide the deposit of 5% of the purchase price, to their Realtor. This will be deducted from the total down payment they agreed to provide. (Purchase price less down payment equals mortgage amount)

Approximately one week before the sale is to complete they will meet with their solicitor.  They will pay the balance of the down payment (subtracting 5% deposit they already paid) and the remaining closing costs, such as property tax adjustment and the legal fees. Once this part of the transaction is completed, the lender (in this case a Credit Union) will forward the money they have borrowed (the mortgage amount) to their solicitor, who will in turn pay for the property they have purchased on the “closing/completion date.”  The following day they will meet with their Realtor to receive the keys to their new home.

My client’s questions last night reminded me to break down the steps.  Now that they have found their home and they are going through this in real time,  it is important to break the steps down for the home buyer so this is  a positive experience, as stress free as possible (considering they are making their biggest financial purchase of their young lives)!

We talked about this process when we first met two months ago.  I left them with a Home Buyers Information Kit and an information sheet on the Costs of a Residential Purchase.   We communicated via email and on the phone several times before they found the home they wanted to buy. 

This was a great reminder for me about knowing my client, understanding their need to know.   

 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.

Enjoy your spring days and nights.

Karen Boies   Mortgage Planner

Boies.k@mortgagecentre.com