PAY YOUR CELL BILL ON TIME!!

Why am I yelling at you for skipping or paying your cell phone payment late?  Because I want you to get a Mortgage! 

Many people think that cell phone payments do not effect your credit.  However as of last month every cell bill has been reporting to the credit agencies the whole duration of the account.  Which means Telus, Kodo, Rogers, and Bell are all on your credit report with a complete history of your account from DAY 1. 

This is being factored into the decision making process of underwriters as of now.   I did have a deal that was close to getting approved, and the underwriter cited bad payment history on the clients cell phone bill as one of the reasons for not approving them at this time.

Don't get mad, just make sure you pay your cell bills on time going forwards, and I promise I will stop yelling at you!  Till then if you do want that mortgage with the best product and mortgage rates, you should call or text me!  403-807-8779   I will shop all the banks for you.  

Dependably yours,
Michael

Need a mortgage document checklist?

You are about to contact your lender or Alberta Mortgage Broker, and want to get some paper work ready.  Well this is what you might need.

You should get a nice little check list when you get the process started, but this will help you get things in order or at least give you some expectations around what you might need to dig out of the filing cabinet for this mortgage.  Of course every case is different, so if it does not apply to you don’t worry about it.  

• Proof of a minimum 3 year Employment History (Minimum 3 months at current job PLUS previous employment details, employment letter stating not on probation, last two pay stubs,

• Address of where you have lived for the last 3 years.

• Verification of Assets such as RRSP’s, vehicles, quads, trailers, or other property that you

• List of Liabilities and personal loans and the monthly payments for them

 

• Proof of your Down Payment for the home you are purchasing, including a 90 day history of those funds

• A signed Gift Letter if the funds you are using for the down payment are being gifted to you for your purchase.  Be mindful that most lenders have their own letters you might have to get signed.

• A Void Cheque for where your payments will be taken from

• A copy of the Purchase and Sale Agreement

• Your most recent Property Tax Assessment to prove there are no property taxes owing in your name

• MLS Listing of the property you are buying

• Statement of Existing Mortgage if you are paying it out to refinance, etc.

• The name and contact information for your Lawyer

• Separation or Divorce Documents if applicable

• Court Orders pertaining to child or spousal support payments, and 3 months of account statements to verify the payments are being paid and up to date

• Your most recent Notice of Assessment to prove there are no taxes owing in your name

• Bankruptcy Discharge Papers, if applicable

If the list seems over whelming, just take it one step at a time, as being a lender, or a Calgary Mortgage Broker its all about getting everything in order to paint the best possible picture we can.  We are trying to show stability, ability to pay back the loan, and that you have the character to pay it back.   If you have questions on your mortgage, pick up the phone and call or text  403-807-8779

Marital Breakdown? What can I do with my mortgage?

If Marital Breakdown is looming what happens to the mortgage? Can you keep the house? Can you refinance your mortgage without the other party?

There is so much to consider when dealing with a divorce so if you don’t feel like reading and just want to talk, or you are just reading for the sake of research as an Alberta Mortgage Broker I would be more than happy to talk or text through your troubles.  If you just want to know my thoughts and some facts, just keep on reading.

You don’t have the 15% to refinance with the new rules, or your spouse wants to be paid out, or maybe they are threatening a lien on the house.   There is hope after all.   CMHC has some unwritten rules when it comes to this, and knowing a Calgary Mortgage Broker who speaks with them all the time can save you time, stress, and pressure.

CMHC has a program where they will under certain circumstances take your loan back up to 95% Loan to Value (LTV). The main advantage of this new possibility is that you will not be mandatory to come up with 15% equity to refinance.  You can buy out your spouse with the difference, or you may be able to use and option to receive a ‘gift’ of 5% of the value of the home.  This comes from your ex-spouse which acts as your new down payment. This does have its advantageous for payout of joint debt or paying off high interest rate credit cards, and will make the separation easier to handle and hopefully keeping your credit rating intact as possible.

• You must have good credit
• There must already be a finalized Separation Agreement in place.
• Gift letter for the 5% gifted equity by the spouse who is leaving the home
• A statutory declaration must be signed 

 

If you are looking to refinance your mortgage due to a marriage breakdown and are still not sure what to do give me a call or text.  Being a trusted Alberta Mortgage Broker is not always about the best mortgage rates, its about helping people stay in their home.

The process through a Calgary Mortgage Broker

Calgary Mortgage Brokers have a simple 5 steps program to guide you through your mortgage application and the approval process. As your Calgary Mortgage Broker I will work with you to assure the financing goes off without a hitch!

1. Connection
As a mortgage broker I have access to over 50 lenders and can arrange the right mortgage solution for your needs. Upon our initial consultation I will provide you with the following services to help you obtain mortgage financing:

• Overview of mortgage options customized to your needs
• A completed mortgage application

2. Collection
With your mortgage application, the lender requires Alberta Mortgage Brokers to collect and submit the following information: your credit report, agreement of purchase and sale(or estimated mortgage amount if you are refinancing), proof of income/employment, down payment amount, identification and solicitor information to the lender (be prepared to gather and send this documentation).

3. Submission
I will submit your application to a lender(s) that best meet your needs. With access to over 50 lending institutions including major banks, credit unions, trusts and other lenders , I can put significant negotiating power to work for you. 

4. Approval
The lender will issue an approval that will require your signature. Your approval documents will include payment details, mortgage terms and privileges, pre-funding conditions (if they apply). If your closing is more than 30 days away we will hold your approval and continue to monitor the market, within 4 weeks of closing we will contact you to finalize your approval documentation.

5. Closing
After signing and submitting all your supporting documentation, the lender will review and approve the final documents and send their instruction package to your lawyer. At this time you can meet with your lawyer to provide identification and signatures and review your final closing costs. On closing day, your mortgage funds are transferred to your lawyer.

Thank you for choosing me as your mortgage broker! Once your mortgage is closed; the stadard practice of an Alberta Mortgage Broker will be to continue to provide helpful information to guide you through market conditions. You can also contact me to navigate your mortgage options, finance renovations, purchase investment properties, or finance a debt consolidation in the future. It has been a pleasure helping you and I look forward to keeping in touch.

Credit & Debt Planning

If I have to tell someone that their debt ratios are too high to qualify for a mortgage, I always offer a solution.   Restructure, Restructure, Restructure.   If that does not work we need more income, so maybe find a co-signer or more downpayment.    Then and only then if that does make the deal I say the words that every Calgary Mortgage Broker hates saying.  Maybe you need to find a lower priced home.  Here is some more information about those ratios and what effects them.

 

Credit Cards

What you should take from this is that credit cards are merely a method of redistributing spending power over time at the expense of interest costs and in a pursuit keeping up with the neighbors and thus increasing your standard of living. There is a shifting consumer mentality from how much it costs to how quickly it can be purchased. Instead of looking at IF the purchase can be made, you have to look at should the purchase be made, and CAN I AFFORD IT?

Separating wants and needs is something that no longer crosses the consumers mind. We highly recommend reducing your credit cards to just two, and using one card more than the other. This card should be of the lowest rate available to you should you carry a balance. The problem is that with available balances impulse spending is more likely. Always try to transfer to the lowest rate card you have, if you can't get your cards down to one right away.

Lines of Credit

In most cases these are secured by assets, and are very similar to overdraft protection. This revolving loan may be a fixed amount or a percentage of the outstanding balance. We recommend if you must use this for personal use to that you ensure the rates are competitive as most times they are prime based and much lower rates than your average credit card. Credit cards with higher rates are often best transferred to a line of credit if the rate is lower. The LOC if secured is often based on prime and is often a very low rate.

How much can you handle?

Based upon the above information you are in a (choose four options to fill in) All decisions on credit is not based on a single system rather a combination of a multitude of factors and referred to as 'The 5 C’s of Credit'.

Character

Capacity

Capital

Collateral

Conditions

We know that credit rating is used mostly to ascertain the rate at which the loan will be given but is generally not a trigger on whether to lend or not.

Character

Character is mostly reputation and history with the bank or lender. Credit History also plays a role in this. - Every consumer has the right to check their history and can be done via the mail for free twice per year. There are also a number of paid for websites offering this service.

Capacity

There are a number of ways to calculate your capacity. 

The 2 most common are Total Debt Service Ratio and Gross Debt Service Ratio.

Historically, lenders like to see a ratio under 0.40 for new loans.

Total Debt Service Ratio is a rough guide for the amount of debt the individual can afford.

This is calculated as monthly mortgage or rent plus property taxes heating and 50% of the condo fees plus debt payments divided by the gross family income.

Total Debt Service Ratio = (Total Housing Expense + Debt Payments) / Gross Monthly Income

Gross Debt Service is a rough guide to determine creditworthiness. This is calculated as monthly mortgage or rent plus property taxes heating and 50% of the condo fees divided by the gross family income.

Gross Debt Service Ratio = Monthly Housing Expense / Gross Monthly Income

Capital

Traded in financial markets. Its market value is not based on the historical accumulation of money invested but on the perception by the market of its expected revenues and of the risk entailed.

Collateral

Having any asset that can be used as security. For example a car, home, and land would be considered.

Conditions

The conditions of the loan, such as the interest rate and amount of principal, will influence the lender's desire to finance the borrower.

Understanding the above will help you understand where you are and the strength of your application and situation.  Knowing where you are before coming to a Calgary Mortgage broker is not required, as we can get you there that is for sure.