M O RTG AG E TIPS
M a cDO NAL What Do These Changes Mean t o Me ? Part 4
Credit Scores and Document at ion: Again, in 2008, lenders were required to be more diligent proving a borrower?s ability to make mortgage payments. Documentation requirements became almost painful. Clients often lament about the lender wanting everything except their first born? . As consumer debt in Canada continues to increase, the government will continue to change lending rules to protect both the lender and the borrower. Credit scores are your only real power when it comes to borrowing. If you aren?t sure how to build your score, please contact me for a free consultation and we can put together a plan to make your credit score solid! Maximum Ref inance Amount s: In 2012, the maximum loan to value for a refinance changed from 85% to 80% of the value of your home. Lenders were finding that consumers were using their homes as an ATM machine. The concern was that Canada would have a generation of retirees with no equity in their homes and no pensions to pay their debts. This continues to be an area of interest and may undergo changes in the future. Qual if ying payment s on credit cards and l ines of credit : Probably the most influential change that I have seen is the 2013 decision to require 3% of the outstanding balance on credit cards and unsecured lines of credit to be added to the total debt to qualify for a mortgage. Prior to this change, you could use the required minimum monthly payment on your credit card or line of credit as your monthly debt. Now, we use 3% . He?s an example? . You have an unsecured line of credit for $30,000. You pay the minimum monthly payment and maybe a little extra when you have the funds. Let?s say $200 per month. When you apply for a mortgage was have to use 3% of the balance owing as your monthly requirement: In this case, $900 per month. That?s an extra $700 per month that gets added to your debts even though, in real life, you are only paying $200! If you are in the middle of purchasing or refinancing your home, please contact me and we can go over your particular situation to see if this change will affect your ability to get the mortgage you are looking for.
SEEKER SNIPPETS - Yo ur Lo caCo l mmunity Ne w s
Jenni MacDonald 613-551-0639 Mortgage Broker Dominion Lending Centres The Mortgage Source
Raising Awareness ...
On M ar ch 5 , 2017 at the Inter national Wom en's Day the W hite Knuckler z RC w er e Raising Aw ar eness for Local Sick Childr en like * Chloe* -w ho has Cystic Fibr osis and * Tai* -w ho has Br ain Stem Gliom a. The W hite Knuckler z RC w ould like to thank the com m unity for all their suppor t. If you w ould like m or e infor m ation please go to FaceBook under W hite Knuckler z RC ; also under Events for July 29, 2017.
THE SEEKER Vol. 8 Issue 11 - March 17 - pg. 10 CLASSIFIED ADS: 613-935-3763 ext 2 www.theseeker.ca