Green Mortgage, Quarterly Newsletter. 10

ISSUE 10 • 2022

GIVING BACK Over $3650 Raised for the Greater Vancouver Food Bank WANTED: HOME SELLERS

by Dr. Sherry Cooper

UNSUNG HERO National News for Green Mortgage’s Best

MARKET UPDATES

Past, Present, and Future With Kyle Green

HOW DO YOU BUY A MILLION–DOLLAR HOME? And What You Need to Know to Make It Happen

Green Mortgage | Newsletter–01 2022 |

1

IN THIS ISSUE

01 03

industry update Market Update Past, Present and future With Kyle Green

Kyle Green Owner

Max Jurock

giving back Money Raised for the Greater Vancouver Food Bank

General Manager

Geoff Shoji

Underwriting Manager

Molly Duncan

04

unsung hero

05

green mortgage’s

National News for Green Mortgage’s Best

Guide to Hiring

Executive Assistant

Ami Arandi

Commercial and Private Lending Underwriter

Michael Browne Account Manager

Robin MacDonald Account Manager

06

webinars 2022 With Kyle Green

Gary Konrad

Account Manager

Kate Riabenka

07 11 13

wanted: home sellers

By Dr. Sherry Cooper

fixed and variable mortgage rates What Rates are Doing and Kyle’s Predication

how do you buy a multi–dollar home

Account Manager

Alex Gattey

Junior Account Manager

Jason Cattermole Underwriter

Cesar Arciba Underwriter

Quinn Berry

Documents Manager

Lisa Bridal

Documents Manager

15

bad credit

16

thinking of co–signing a mortgage

What you can do to improve your chances.

Lee–Ann Ong

Documents Manager

Kyle’s Market Update

Market Updates: The Past, Present, and Future An Insider’s Look to the Mortgage Market As crazy as 2020 was, 2021 proved to be an ever–wilder ride for the real estate market. Average home values across Canada increased by a record–setting 26.6%. The trend didn’t slow down as we approached the end of the year, either. Sales to active listings in Metro Vancouver were 51.3%, signaling an incredible sellers’ market. Typically, under 12% represents a buyers’ market (decreasing prices), and anything over 20% is a sellers’ market (increasing prices). Unless there are dramatic increases to supply or decreases to demand, there doesn’t seem to be any change in sight. Hearing of 30+ offers per property is becoming commonplace, especially for entry–level properties in the detached and townhouse markets.

How the Climate Has Affected the Mortgage Industry Well, it sure has squeezed brokers and banks alike. Sales volume in Vancouver in 2021 was just slightly over the all–time high of 2015. On top of this, sellers’ markets often bring tighter timelines to make a purchase offer more attractive. With such a high volume of transactions, many lenders were in a hiring spree to attempt to keep up. We were too. Green Mortgage went from a team of 7 just before COVID and ended 2021 with a team of 18.

How We’ve Adapted to Help Our Clients The best way to compete is to write a subject–free offer, turning the traditional transaction on its head. A buyer typically writes an offer, gets accepted, and then does their due diligence. Instead, many of our clients are doing their due diligence (appraisal, inspection, review of strata documents, etc.) and then writing a condition–free offer. This allows our buyers to write offers at much lower price points than other conditional offers or at least compete with the others writing subject–free. Many lenders won’t do this, but we work with a select handful who help our clients write subject–free and get ahead of the competition.

With Kyle Green Owner GREEN MORTGAGE

Khristina and Kyle’s Year in Review At the end of the year, Green Mortgage finished funding $250 million in mortgages, which was about our combined volume in 2019 and 2020, increasing 65% from 2020. On top of this, I flipped a 14–unit apartment building in North Vancouver for a healthy profit, returning 28% to our investors over an 8–month period for an annualized return of about 42%. Khristina and I purchased a 7–unit apartment building in downtown Victoria that we are renovating and theming for Airbnb. I also just acquired another mortgage brokerage in Vancouver, Origin Mortgages, whose 40 agents funded over $1 Billion in mortgages last year.

Kyle’s Market Update

While 2021 has been quite the interesting year, we are grateful for both the wins and losses.

That said, we look forward to life normalizing in 2022 a bit. It’s fine to grind when you’re pushing the boulder uphill, but it will be nice to take some time to get back to healthy habits like exercise, cooking, and enjoying the fruits of our labour by taking time off to reflect on the challenge and success of 2021.

With Great Hair Comes Great Responsibility

Make 2022 the greatest year, whatever that means to you. It may be financial, fitness, or fun, but whatever it is, cheers to your success this year!

Kyle Green

Green Mortgage | Newsletter–01 2022 |

2

giving back

Thank You

OVER $3,650 RAISED For the Greater Vancouver Food Bank!

Our deepest appreciation The Green Mortgage Team would like to thank all the generous benefactors for their profound donations. Together, you raised over $3,650 for the Greater Vancouver Food Bank! People like you help feed our community’s most vulnerable neighbors.

Because of you, at–risk individuals had access to food, basic toiletries, and a sense of community throughout the holiday season.

Ozzie Jurock was the event’s largest cash donor, and when asked to reflect on the occasion, he said: “It’s important for us to make a difference in our local community when it matters the most. Who doesn’t love a friendly competition between friends, other businesses, and Ralph. Thank you for organizing such a great event! I look forward to it next year when Ralph might actually win for once.”

Green Mortgage intends to organize more events like this in the future, and we eagerly await the opportunity to come together again and do good for our community.

An Official NHL Update As a display of our appreciation, Green Mortgage awarded the largest cash donor and one randomly selected winner with a pair of Vancouver Canucks tickets.

Green Mortgage | Newsletter–01 2022 |

3

INTRODUCING GREEN MORTGAGE’S

UNSUNG HERO

NATIONAL NEWS FOR GM’S BEST The COVID–19 pandemic upended our worlds in different ways. Some were locked at home, some worked double–time and many others had to keep businesses going as if the world wasn’t experiencing a global event.

Frontline workers deserve an endless wave of accolades and praise for their heroic work, as do the individuals who kept businesses moving forward. We recognize those who supported team members from home, who kept morale high and stress low, and who ensured the band didn’t skip a beat.

We’re proud to announce that Green Mortgage’s General Manager, Max Jurock, has been nominated by Canada’s top mortgage company, Dominion Lending Center, for their Unsung Hero Award, beating out 2,900 mortgage brokers, 185 franchises, Wand 350 offices throughout Canada.

Jurock believes the real award is working with such a supportive team.

“

Being nominated for this award wouldn’t have been possible without the great support from the team Max Jurock

”

Green Mortgage | Newsletter–01 2022 |

4

Green Mortgage’s Guide To Hiring Plus, a glimpse at GMT’s New Team Members MT is known for providing G outstanding service to our clients, and that’s why our family has recently grown to include new team members!

when should a business hire new employees?

It was important for GMT to get the timing right when they decided to bring on new employees. Finding that opportune time is key to success. If a company hires someone too soon, profits can decline and cash flow can dry up, but if a company waits too long to bring on new workers, its commitments can outpace capacity. Hiring new employees is a balancing act between workloads that justify additional help and finances that allow for the added costs of new employees.

Strong Growth If your business has been steadily growing its revenue for several months, you might need to scale up and hire new workers in order to continue at the same growth rate.

Employee Capacity

I f employees are unable to take on new work or are struggling to manage their current workload, it could be a sign that you need to create a new or supplementary position to continue growing your business.

Expert Skills If your business requires a skill set that your current staff

doesn’t have, you’ll want to hire an expert in that area,even if your current workforce has the capacity for new work.

how do you know when to hire more staff?

CESAR ARCIBA underwriter

Changes in business operations, processes, or procedures can signal that you need to hire new staff to keep your business from suffering.

Revenue Stagnates

If your revenue growth slows, stops, or stagnates it could be because the departments that drive the greatest amount of revenue have reached their capacity.

Overworked Employees

If you notice low morale, high employee turnover, or increased sick time, it can mean you need to hire new workers to make sure your employees aren’t being worked too hard.

Poor Service

If you receive client complaints about delayed service or lower-quality service, hiring new employees to help get the work completed on time will maintain high standards.

why hire new staff?

If your business has reached its capacity to take on new work and you’re experiencing strong signs of growth, hiring new staff can bring many benefits to your workplace. Some of the top advantages to hiring new staff are: • Bring new ideas to the company • Increase the skill set of your company • Grow revenue within the company

LEE–ANN ONG document manager

Green has found that company culture is key when building or expanding a company. Creating a culture of Kaizen, or continuous improvement, has been our secret to growing, attracting, and retaining some of the country’s top talent.

Green Mortgage | Newsletter–01 2022 |

5

WEBINARS 2022 WITH KYLE GREEN

First Wednesday of the Month at 7pm.

Webinars are limited to 500 attendees, please register in advance by clicking on each webinar below.

April 6th

AirBnb Investing

May 4th

How to leverage your home equity

June 1st

Buying your first 5 investment props

July 6th

Buying 5+ investment props

August 3rd

Construction Financing

September 7th

Commercial Lending

October 5th

Private Lending

November 2nd

All About Refinancing

December 7th

Reverse Mortgages

Click here to register

Click here to register

Click here to register

Click here to register

Click here to register

Click here to register

Click here to register

Click here to register

Click here to register

Green Mortgage | Newsletter–01 2022 |

6

WANTED: Home Sellers With an election coming this spring in Ontario, Premier Ford’s Housing Affordability Task Force has made recommendations to step up homebuilding. Still, Ontario’s mayors are balking at some of their proposals. The task force report from the calls for binding provincial action to allow buildings up to four storeys tall and up to four units on a residential lot.

DR. SHERRY COOPER Chief Economist, Dominion Lending Centres Sherry is an award-winning authority on finance and economics with over 30 yearsof bringing economic insights and clarity to Canadians.

Ontario’s Big City Mayors group responded, saying, “unilateral actions, absent municipal input, may have unintended consequences that slow down development and reduce the community support needed to continue to sustainably add housing”.

While overcoming Not In My BackYard–ism is essential to success, so is respect for local decision–making and the democratic process. This is a roadblock to the aggressive and timely response.

We desperately need dramatic increases in new housing construction, which has been woefully constrained by local zoning, red tape and city planning issues. These are not under the auspices of the federal government.

So instead, bandaid measures that do not directly address the fundamental issue of a housing shortage will likely be forthcoming in the spring federal budget.

Housing affordability remains a huge political issue, and with the Department of Finance working on the upcoming budget, no doubt measures to reduce home prices will be front and center.

Today the Canadian Real Estate Association (CREA) released statistics for January 2022 showing national existing–home sales rose edged higher on a month–over–month basis, constrained by limited supply. Excess demand pushed home prices up on the month by a record 2.9%, taking the year–over–year home price index up a record 28%.

Cliff Stevenson, Chair of CREA said, “The question is will that supply be overwhelmed by demand as it was last spring, or will we start to see the re–emergence of some of the many would–be sellers who have been hunkered down for the last two years?”

“The ideal situation between now and the summer would be that a huge surge of sellers rd looking to sell in the spring 2022 market,” said Shaun Cathcart, CREA’s Senior Economist.

“If that were to occur, similar to 2021, we’d likely see a massive number of sales take place which would get a lot of frustrated buyers into homeownership, and we’d likely see some cooling off on the price growth side if those offers are spread across more listings. Those are all things this market needs. It really comes down to how many properties come up for sale in the months ahead”.

Wanted: Home Sellers

New Listings In January, the number of newly listed homes dropped by a whopping 11% m/m, with a pullback in the GTA accounting for more than half of the national decline (chart 1 below).

With sales up a bit and new listings down by double-digits in January, the sales–to–new listings ratio shot to 89.4% compared to 78.7% in December (chart 2 below). This was the second-highest level on record for this measure, only slightly below the record 90.2% set last January. The long–term average for the national sales–to–new listings ratio is 55%.

A record 85% of local markets were seller’s markets based on the sales–to–new listings ratio is more than one standard deviation above its long–term mean in January 2022.

The other 15% of local markets were in balanced market territory. There were only

1.6 months of inventory on a national basis at the end of January 2022–tied with December 2021 for the lowest level ever recorded. The long–term average for this measure is a little over five months.

Home Prices In line with the tightest market conditions ever recorded, the Aggregate Composite MLS® Home Price Index (HPI) was up a record 2.9% on a month–over–month basis in January 2022. The gains were similar to those recorded in the previous three months.

The non–seasonally adjusted Aggregate Composite MLS® HPI was up by a record 28% on a year–over–year basis in January.

Looking around the country, year–over–year price growth is in line with the national figure at 28% in B.C., though it remains lower in Vancouver, close to on par with the provincial number in Victoria, and higher in most other parts of the province.

Year–over–year price gains are still in the mid–to–high single digits in Alberta and Saskatchewan, while gains are running at about 13% in Manitoba.

Ontario saw year–over–year price growth remain above 30% in January, with the GTA having now caught up with the pace of provincial gains. The rest of the province is a mixed bag, up in between 25% and 40% on a year–over–year basis, save for Ottawa where prices are running at 16% year–over–year.

Greater Montreal’s year–over–year price growth remains at a little over 20%, while Quebec City was about half that.

Price growth is running above 30% in New Brunswick (higher in Greater Moncton, lower in Fredericton and Saint John), 27% on Prince Edward Island, and Newfoundland and Labrador is now at 12% year–over–year.

Green Mortgage | Newsletter–01 2022 |

9

Wanted: Home Sellers

BOTTOM LINE While most developed countries have seen excess demand for housing over the past two years pushing home prices higher, Canada has the most significant housing shortage in the G7. This began in late 2015 when the federal government decided it would target the entry of much larger numbers of economic immigrants. Canada is underpopulated and celebrates a growing population, unlike many other countries. There are many job vacancies to be filled, and more people means more economic growth and prosperity for Canada.

But what the federal government forgot to do was provide housing for all new residents. Simply put, governments at all levels established no plan to provide any additional housing for all of these newcomers, let alone affordable housing. Canada’s net migration rate is 6.375 per 1,000 people, the eighth–highest in the world. Approximately 1.8 million more people were calling Canada home in 2021 than five years earlier, with four in five of these having immigrated to Canada since 2016.

This is not rocket science. The government can blame foreign buyers or investors for our housing shortage, but inadequate planning and antiquated processes and policies are the real culprits.

Dr. Sherry Cooper Chief Economist Dominion Lending Centres drsherrycooper@dominionlending.ca

FIXED AND VARIABLE MORTGAGES RATES What Rates are Doing and Kyle’s Predication

fixed rates

Many economists are predicting that fixed rates will continue to climb this year. I am in this camp, although not as aggressive as most economists, who are predicting 1%+ increases. If you look at the bond charts, increases of this magnitude will push us to the highest levels we have seen in a decade.

Do I feel that we are entirely out of the woods yet? No. I imagine there will be setbacks to the inevitable rise of rates (I’m keeping an eye on you, China), which will keep us from hitting those highs in 2022. I can only see rates rising that quickly if inflation continues to run away and cause major concern with central governments. This could happen…we are hearing reports of 7% inflation in the US. It will be an interesting year.

Kyle’s Prediction My prediction for 2022?

Expect rates to rise .5%–1%,most likely .5% to .75%.

This will put 5yr fixed rates to 3.5% to 3.75%.

Published by Investing.com 2022-0-26 9:38am—Powered by Trading View

variable rates

5–Year Canada Toronto: CA5YT=RR, D

V

ariable-rate mortgages are based on two factors: the Bank of Canada setting the overnight lending rate (which is what banks use to set their prime rates), and the discount off these rates.

F

ixed rates hit an all–time low in early 2021, with 5yr fixed rates of 1.59% widely available. The low point was short–lived, however.

Bond yields had a few big bumps up during the year and ended over 1% higher by December. This jump was the largest single–year jump since 2009 (the rebound year after the US sub–prime crisis).

Fixed–rate mortgages are highly correlated with bond yields as they are very similar asset classes. In general, Fixed rates are about 1.2%–1.5% higher than bond yields in order to account for the cost of lending out the funds, bundling them up, and selling them.

Green Mortgage | Newsletter–01 2022 |

11

Fixed and Variable Mortgage Rates

After aggressively dropping 1.5% to 2.45% in early 2020 due to COVID, the prime rate has stayed flat with very little upward pressure through 2020 and 2021.

This year, however, is likely to be very different. Many economists are predicting as many as six increases of .25% to the prime rate, which would bring us back to pre–COVID levels again. Economists are citing inflation levels well over the target inflation of 2%, which is of great concern to central governments around the world. There has been a feeling that this inflation is transitory and that the supply chains worldwide have been a primary driver for the high inflation. As time passes, it feels more and more like this inflation may not be as short–term as initially thought. Anecdotally, almost all white–collar professionals I know are busier than ever and saving more than ever. It will be interesting to see how things balance out when we get to a time and place where COVID is not a major factor in our lives.

Something I want to add: Yes, this is lower than many economists predict.

One thing I have found about economists is that they almost always predict that rates will slowly rise. Economists are using the information in front of them to make their predictions. The challenge with predicting rates is that unforeseen circumstances always push interest rates back down. Think of 9/11, US Sub–Prime crisis, Brexit, COVID...All these events pushed interest rates down and were very hard to predict (unless you are Michael Burry... if you don’t know who I am referencing, The Big Short is an entertaining movie about the US sub–prime crisis). Although I do expect rates to rise, I also foresee speed bumps along the way. I just don’t know what they will be.

lock–in meter

In addition to the prime rate is the discount rate. Since October 2020, variable rates have been around Prime –1% or even better. Historically, this is a very competitive discount. In my 15–year career, the median has been somewhere around Prime -.6% - .7%. It isn’t common to be getting both a low prime rate and a large discount at the same time. This is one of the reasons that a larger number of borrowers took variable rates last year compared to what we’ve seen in the past. The other primary reason is that fixed–rate penalties are projected to be 5x–10x more expensive than the 3–month interest penalty on a closed variable mortgage–much higher than the 3x –5x we see in most markets.

Kyle’s Predication My prediction for 2022?

We are already seeing the variable discounts start to shrink, so I expect we will be around the Prime - .7% mark near the end of the year as the money supply slowly becomes less liquid. At the same time, we will see the Bank of Canada increase rates, although I don’t foresee us going back to pre–COVID levels just yet unless inflation continues to be a runaway train. My bet would be 3–4 prime rate increases, so .75%–1% higher by the end of the year, taking us to 3.2%–3.45%.

DO NOT LOCK–IN

TIME TO LOCK–IN

Kyle’s Advice on Riding the Waves Fixed rates may not be this low again for a very long time. If you’re concerned and unable to afford your mortgage if it was to go up 1% - 2%, consider locking in. Just remember that the “IRD” penalty for breaking a fixed-rate mortgage will likely be 5x – 10x more expensive if you break that fixed-rate contract.

That said, many of our clients are likely to ride it out on their variable rate mortgage even as rates rise. As rates climb .5% - 1% higher, there will likely be some thoughts of “Why oh WHY didn’t I lock in earlier??” Keep in mind that you will likely be jumping up from about 1.5% to 3% right away by locking in. I also feel that there will be negative news that will push the rates back down. If you locked in, you’d now be telling yourself, Why oh WHY did I panic and lock in??.

If you’re OK riding the waves up and down (and the emotions that come with it), then we generally advise sticking with your variable rate.

Green Mortgage | Newsletter–01 2022 |

12

How Do You Buy a Multimillion–Dollar Home?

And What You Need to Know to Make It Happen.

While money must be funny in a rich man’s world (according to ABBA), it’s no joke in the real estate world. With house prices rising faster than Jeff Bezos’ bank account, you may be wondering just how high you should aim.

Million–dollar homes used to be top end, but in some Canadian cities, they’re now common. If buying in the millions is on your mind, it’s time to find out once and for all whether your budget is justifiable.

You better have some good savings!

You’ll need a minimum down payment of at least 20% on properties over $1M (yes, you read that right!). If that’s not enough, you’ll also pay closing costs between 1.5-4% of the property value. Closing costs pay for inspection, legal fees, title insurance, and land transfer tax. If those numbers are looking scary already, you’re probably not in the position to buy a million-dollar home. Ouch...

Your debt service ratio You need to know if you can afford the monthly costs. You can work this out by using two debt service ratios: gross debt service and total debt service.

While learning about debt service ratios is far from fun reading, it is essential, especially when aiming high with house prices! So, how are they calculated?

Other things to consider: What does your life look like?

Alongside buying a dream home, or any home for that matter, you probably have other big plans too! Babies, travel, buying more property... There’s plenty to put your money into. If your finances are already looking tight after the above debt service ratio, just think how it’ll look with two babies on your hips.

Got your retirement fund fixed?

Did you know that it’s recommended to save 10% of your gross salary for retirement? If buying a million–dollar property uses up all your savings, will you have the income to start stacking dollars again, and will that number fit with your retirement plan?

Can you keep up with interest rates?

Your mortgage rate isn’t fixed forever. Ask yourself this, if your interest rate was to go up when the renewal o’clock strikes, could you still afford the monthly payments?

When it comes to buying property, living dangerously is not recommended!

Will a million-dollar home be on your horizon?

The gross debt service ratio is calculated by adding mortgage and living costs and dividing this figure from your income. The resulting figure must be less than 32% of your annual income to qualify for a mortgage.

While a million–dollar home may be on your bucket list, is it genuinely viable? If you’ve got the down payment, the income, and you know you’ll be safe even if monthly payments went up... There’s no reason why you can’t make this your reality.

The total debt service ratio takes your mortgage and living cost figure and adds owed debt payments (e.g., credit card interest or loans). It’s then divided from your income. This figure can’t be higher than 40% of your income.

At the Green Mortgage Team, we take a realistic and creative approach to financing large purchases. While purchasing a million–dollar home might be a dream for some, a reality for others, or a simple investment for the established real estate investor, we’re here for you every step of the way.

Once you do those calculations, you’ll have a better idea if your million-dollar dreams are attainable. Having insight into what a realistic budget looks like for you is essential before you house hunt.

A mortgage broker can offer the best insight into how much you can afford, especially when looking at 7-figure properties.

By working with specific lenders, Green Mortgage can make your million–dollar, or even multi million–dollar, budget a reality!

Green Mortgage | Newsletter–01 2022 |

13

info@greenwealthcapital.ca | 604-499-8976 #550—2608, Granville Street, Vancouver, BC

V6H 3V3

BAD CREDIT: Trying to Buy a House?

Look at different lenders

what you can do to improve your chances now.

If you’ve got bad credit, you may be in mourning for a home you never had because you’re under the impression that bad credit means no chance of getting a mortgage...

I’m here to tell you to put the black clothing away. Bad credit doesn’t mean no mortgage. Let’s be honest: life is hard. Finances are hard. You can’t plan for everything, and I bet you never planned for bad credit.

If this is the case, and you’re tired of paying someone else’s mortgage off, pay attention and listen because we’re gonna drop some truth bombs and get you a little more mortgage-ready.

Let’s remove the cause First truth bomb incoming! If your credit score is causing all the problems, you MUST improve it. If you’re done keeping up with Jones’ and just want to drool over their interest rate, keep working on rebuilding your credit score.

Pay your bills and debt payments on time. Unlike your exes, you can’t just ignore them. Stay under your credit limit, and don’t start applying for more credit—it can look like you’re in financial difficulty.

Alongside this, keep your oldest credit accounts, as longer credit history is better credit history.

Start saving more Luckily, you don’t have to rely on your credit score alone to get a mortgage. Lenders will look at your down payment too. Having a minimum down payment of 20% or higher compared to 5% makes you appear far more financially stable. Not only that, but you’ll cut your monthly payments down and not have to pay mortgage default insurance. Can I get a high-five?!

Much like the cool kid table in the high school cafeteria, the most popular lenders can be a bit exclusive. Mean Girls said it best, It’s not our fault we’re, like, in love with them or something! Step away from them, for now. There are specific B lenders and private lenders who aim to help people with bad credit. It’s actually your lucky day because our team of mortgage brokers have the lending lingo down and know the cool kids you should call!

Can you get a co-signer or joint mortgage?

Having someone to support you could equate to better mortgage opportunities. A co–signer acts as a mortgage guarantor and promises to pay monthly payments if you can’t. However, they usually need to become a part–owner of your home. Make sure you choose wisely—avoid anyone who’ll cause messy situations when you need help or decide to sell. A joint mortgage is a great option if you have someone in mind to live with and want them to own part of the home too.

Our key advice Yes, you can get a mortgage with a less–than–perfect credit score. BUT...That doesn’t mean leaving your score in the shadows. For the best chances and cheaper rates please send your old credit score packing and work on something bigger and better! We know you’re worth it.

Need some help? Just like Cady Heron, the Green Mortgage Team understands that when it comes to how many lenders you should shop, the limit does not exist. That’s why we work with a large variety of lenders. If your credit score has got you feeling crazy, and you know you can make a mortgage work, we’d love to help find a creative product specifically for your specific situation. You go, Glen Coco!

I t’s actually your lucky day because our team of mortgage brokers have the lending lingo down and know the cool kids you should call!

Green Mortgage | Newsletter–01 2022 |

15

THINKING OF CO–SIGNING A MORTGAGE? What are your other options?

Before you get someone to co–sign, you should check other mortgage options.

Think about the reason behind your inability to get a mortgage too, can this be fixed? If you’ve spotty credit, you’d be better off taking time to improve things.

Heading to a mortgage broker could also be helpful for you. They’re in touch with lenders who deal with all kinds of borrowers...Bad credit, strange taste in homes, those tiny houses that aren’t a trailer but actually are.

What to do if you decide to be a co–signer: • Read the paperwork. Heck, use it as nightly bedtime reading! Being aware of the terms and conditions is paramount. Once you’ve signed, keep a copy, a copy of the copy, and an online copy of that copy!

• Have relevant insurance. Not that I’m suggesting anything bad will happen to you, but it’s nice to cover your back. Alongside that, get the actual primary borrower to take out insurance too.

• Have access to the account. As a co–borrower, any missed payments affect your credit score too. Having account access means you can ensure payments are always made.

• Up your knowledge. Talk with a real estate lawyer, mortgage professional, or trusted professional and make sure you know all the legal lingo that will come with co–signing. Don’t get caught out!

Is co–signing the right thing to do?

If you think you need a co–signer, make sure you’ve looked at other mortgage options first, using a mortgage broker to help you. Know that co-signing is a big ask of someone. Get your ducks in a row and make sure you can make those monthly payments—it’s only fair!

Our Expert’s Pros and Cons You know you want to buy; I know you need to get the best mortgage... but lenders aren’t as generous. It’s just how it is sometimes. If you’re struggling to afford a home, or don’t fit the lender’s list of requirements, then you may wonder if getting a co-signer is the right option. But what are the risks? Let’s discuss.

If you’ve been asked to be a co–signer, ask yourself, is it worth the risk? If you trust the person and know they’ll be up on monthly payments, this could be a great boost for them. If finding the right lender is proving impossible, the Green Mortgage Team could have the perfect cure! Expert advice, connections with all types of lenders, and understanding of your personal, unique situation. And yes, they can even do Zoom calls with everyone involved.

What does it mean to co–sign a mortgage?

When a person co–signs a mortgage, they legally promise to make the monthly payments if the main borrower can’t. Another name for this person could be legend... Saviour...Knight in shining armour...They’re basically taking a big risk to ensure you can buy!

Is it worth being a co-signer?

If you’re a parent, you probably think it’s worth co–signing just to get your kid to move out! Being a co–signer takes trust and maybe a dash of unconditional love. By co–signing a mortgage, you become a co–borrower too. If the mortgage goes into default, you’re also headed for the naughty corner. This is obviously a big risk, so you need to know that the person you’re helping is responsible enough of owning a house and having a mortgage.

Green Mortgage | Newsletter–01 2022 |

16

T

604-229-5515

greenmortgageteam.ca info@greenmortgageteam.ca #550–2608 Granville Street Vancouver, BC V6H 3V3