Mortgage rates are at a historical low! If there’s a right time to make that first purchase or upgrade it is now! here are some terms to help you better understand what a mortgage is and what its composed of. … Continue Reading
The Real Estate market is HOT, and this can put both the Seller, Buyer and Realtor in a hot situation. The Seller is expecting top dollar for there home, buyers are trying to get a deal, and the Realtors are caught in the middle trying to make the transaction as smooth as possible!
Here are a couple tips to keep in mind when you get into a BIDDING WAR!!!
1.Sit back and decide what your bets offer is, ” the value is in the eyes of the buyer, whatever the buyer is willing to pay will pay, even if its $30,000 over asking if they want to buy that home they will put the number on paper!”. Offering the highest price will make your offer more attractive and is a sure way to get the Seller’s attention. In most cases Seller’s who receive multiple offers only seriously consider those at the top of the price heap.
2. Show the Seller that you are a serious Buyer. Offer a large down payment or deposit, this will show the Seller your motivation.
3.Get Pre-Approved by your mortgage professional. Going in with an offer without a need of a financing condition shows the Seller your are financially stable and can afford this transaction. And you may want to even include your pre approval letter with your offer, so the Seller can see you are approved.
4. Do not add unusual conditions to the offer, you don’t want to complicate things. By adding more useless conditions this can act against you when your up in a bidding war. Try to avoid conditions such as ie: “Conditional on the sale of your home” etc this can act as a loop hole and be a way for a Buyer to get out of the deal. However do not exclude the standard conditions such as for home inspection or financing conditions, unless you know the risks that can come along with it.
One of the highest financial priorities of Canadian homeowners is to pay off the mortgage as quickly as possible. The faster you pay off your mortgage, the less money you’ll spend on interest & the more equity you are building in your home. The majority of our lending institutions provide you with the following options to help you create your own amortization schedule by paying off the mortgage much sooner:
* Prepayment options of up to 15% of the total mortgage amount on an annual basis without penalties
* You may also increase each payment by up to 15% without penalties.
* Double up your mortgage payment on any scheduled payment date without
penalties
Pay-Off Tips:
* Use your salary bonuses and tax refunds to pay down your principal. More Canadians are becoming aware that, since mortgage interest is not tax-deductible in Canada, (as it is in the US), you are making mortgage payments of both principal and interest with money that you’ve already paid tax on – “after tax dollars”. This makes it even more important to eliminate the drainage of disposable income as soon as possible!
* Keep your payments the same if interest rates drop if you have a variable mortgage as fixed rates do not change throughout the term of your mortgage
* Choose accelerated bi-weekly payments to get a “free” principal reduction equivalent to one full mortgage payment every year – painlessly. Unless you are paid weekly it makes little sense to make weekly payments. All you’d be doing is making a smaller payment, and deferring the difference for a week.
* Choose a shorter amortization period – but do keep in mind that a higher amortization term allows your first five years of expected scheduled payments much lower, allowing you to adjust to being a first time home-buyer. The amortization period can be changed when the term of your mortgage is up. Even if you start out with an extended amortization period, the above pre-payment privileges help you reduce your selected amortization period.
* Use your RRSP-driven tax rebate religiously as a mortgage prepayment method. Even if you can only prepay annually, make sure these funds are set aside for that purpose. Many Canadians will borrow (at prime) to buy an RRSP to ensure the maximum rebate. When applied to the mortgage principal, this refund is a “gift that keeps on giving”. Combining the refund with the tax-free interest earned on the RRSP over the subsequent years will quickly outpace the short-term interest costs of the RRSP loan
Today’s rate special: 3.99% Five Years Fixed
(Applicable Under Quick Closing Program. Special conditions may apply.)
Today’s Fixed Rates
Term | Bank Rate | Our Rate
1 Yr | 4.50% | 3.50%
3 Yr | 5.20% | 3.90%
5 Yr | 5.55% | 4.05%
Today’s Variable Rates
Five Yrs Convertible: 3.30%
Five Yrs Open: 3.50%
Home Equity Line of Credit: 3.50%
(Above Rates are Based on Current Prime Rate of 2.50%)
Brought to you By: Debbie Gomes-Andrade
Mortgage Agent
Lic.# M08010945
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