Mortgagenomics Canada

What is a real estate assignment contract?Before I get in to the process of how to qualify for a mortgage when assigning a real estate contract, let's first unravel what a real estate assignment is.A real estate assignment is a transaction similar to that of a standard real estate transaction, except rather than being referred to as a buyer and a seller, in an assignment they are referred to as an Assignor and Assignee, the assignor being the seller and the Assignee, the buyer.The main distinction of an assignment contract is the subject item of the assignment. Rather than being the property itself, the transactional item in an assignment contract is the RIGHT to PURCHASE - the property. Hence, the original terms and conditions of the original purchase contract remain intact. The only changes are in ownership and negotiable price.Why would someone want to purchase a property via an assignment?its a way to get into a new property without waiting for a long period of time (typically, assignments

Since the launch of the program in Sept 2019, only 13% of the programs allocated reserve actually made it to the hands of first time home buyers. Will the upcoming enhancement spur more interested applicants, or is this program simply a dud?Three words that best describe Trudeau's First Time Home Buyer Incentive (FTHBI) program that was launched back in Sept 2019 - OVERRATED, UNDERUSED, and CONFUSING.But that could change as early as this coming spring as the programs maximum thresholds have been increased to capture a more broad range of buyers in Canada’s two highest priced markets; Vancouver and Toronto. In 2019, the FTHBI program was available for properties up to a maximum purchase price of $507,000. However, in 2021, the program will be enhanced to accommodate for a maximum purchase price of ~$722,000.First, let’s talk about what it's NOT:It’s not free money (has to be paid back in 25 years or when you sell, whichever comes first), It doesn’t help you&n

One of the consequences of selling a home is the unexpected penalty that arises as a result of breaking your mortgage contract ahead of its maturity date. The penalty is determined by the greater of 3 months interest, or the dreaded interest rate differential (IRD). And the scary part is the your penalty can radically change from the day you list your property for sale to the day you sell it, especially in a whacky environment like we are currently in with the recent free fall in interest rates.  One way to avoid a break penalty is by porting your mortgage to your new home purchase.HERE's HOW A MORTGAGE PORT/TRANSFER WORKS:There are three (3) Porting options:Straight Port (when you transfer precisely the same mortgage balance to the new property)Port and Increase (when you transfer the mortgage and increase the principle balance) Port and Decrease (when you transfer the mortgage and reduce the principle balance)**depending on the lender, applicants have 30 to 180 d

Mortgages are classified as one of the following three; Insured, Insurable, or Uninsured/Conventional.The way a mortgage is priced and qualified depends on how its funds were purchased, acquired or allocated.Mortgages are either insured by the borrower, bulk insured (securitized) by the lender, or simply uninsured all together.Once they are given their insurability classification, they are then priced and underwritten, accordingly:(1) INSURED MORTGAGESOnly available for purchases of owner-occupied properties under $1M with 25 year amortizationsminimum down payments of 5%, but cannot exceed 20%the premium is commonly paid for by the applicant via an equity stake on the property (rather than out of pocket). For example, let's say you are purchasing a $400,000 property with a 5% down payment. Your mortgage would be $380,000 PLUS an insurance premium of 4% of the mortgage amount. Therefore, your total mortgage would be bumped up to $395,000 ($380,000 + $15,200)mortgage

When I first became a mortgage broker (in 2004), the hardest thing for me to understand at the time was how business owners got away with qualifying for hefty mortgages with such low declared incomes. Like how does a contracted engineer who declared $65,000 on their T1 General end up qualifying for a $650,000 mortgage (which requires an annual qualifying income of $100,000)?? I did quite a few deals that year and many of them in Calgary's oil and gas sector which consisted of many self employed applicants. And it wasn't until about my third year that I started to comprehend how someone who earned $65,000 could use $100,000 as qualifying income.This type of scenario is prevalent with self employed applicants because their declared income could often be conceivably lower than what it really is. This is mainly the result of the various expenses that business owners claim to reduce their taxes payable. Other factors such as personal i

The following is discussed in this episode:Throughout our lives we will likely be moving from one property to another, and in the process, we use the equity accumulated from the previous property to either buy the new property outright, or use whatever is remaining (once the existing mortgage is paid out) as a down payment for the new property.But sometimes your new property’s closing date doesn’t quite line upwith the closing date of your current property…so in other words, you may find yourself in a situation where the closing date of your new property is BEFORE the completion date of the sale on your current property. <-This is where Bridge Financing can be used.Or, some sellers simply are not aware that they can conveniently schedule the closing date of their current property to lag the completion date of the new property to accommodate for a smooth and stress free moving process from the old home to the new one. <- This is also a good applicati

Everyone assumes that verification of down payment proceeds for a mortgage is a swift and miscellaneous part of the mortgage qualification process. When you think about it, why would it be difficult? If the applicant does, in fact, have the funds in their bank account, why then does it matter where it came from and how long it's been there?One would argue that the biggest qualification hurdle in qualifying for a mortgage is income verification. However, if you ask a mortgage broker, they would likely reply that it is down payment verification. And the main reason being is that it is very much often overlooked and taken lightly by applicants…until your days away from your closing date and the lender is holding back your advance because they have discovered a stray $5,000 deposit into your bank account from which the origin hasn’t been confirmed or disclosed. Be aware, the unique thing about down payment verification is that its verification criteria is not so much a policy of the lender, bu

The following is discussed in this episode:Purchasing a property inside of a corporation: OPERATING COMPANY or HOLDING COMPANY?*this a decision you will want to discuss with your accountant as there are reasons to do so in both cases. However, as far as mortgages are concerned most lenders require that the property be held in a holding company. There are a select few that allow one to do so in an operating company, but the interest rates are typically higher. I have reached out to lenders and asked why this is the case…they mostly replied that the exit strategy of the property could become difficult or problematic in the event the corporation (the operating company) is sold, or confronted with some type of creditor challenge, thereby coupling the property with the corporations resulting outcome*when it comes to mortgages, not all lenders allow for purchasing within a corporation…but enough of them do. It is important to disclose your intent

The following is discussed:>for the 6th consecutive week 5 year fixed rates are available for as low as 1.79%. Even lower rates are available for no-frills products (I've seen rates as low as 1.64%). One other rate promo to be aware of -> 1.89% for a 5 year fixed, but no interest for the first three months (and it’s not tacked on to the mortgage either! This is the real deal, no smoke in mirrors). Enjoy the savings and the reduced mortgage payment, or lump sum the difference directly into your principle to accelerate your amortization!>More on interest rates and promotions: Last week I wrote that the Bank of Canada (BOC) will be discontinuing its purchase of bonds, but they have since renewed their commitment and simply scaled back their commitment from $5 Billion in bond purchasing per week to $4 Billion…this means continued low fixed rates! Also, this week, BOC announced they will be keeping prime rate at 0.25% for the unforeseeable future…some are speculating as long as 20

Key points:New approach/format to podcast...expect weekly episodes based on Marko's weekly newsletterTwo upcoming events that could potentially cause interest rates to increase (Bank of Canada's announcement to stop purchasing bonds AND the US Election)a reminder of the 3 golden credit boostersMarko Gelo Garage Band Sessions: (produced and performed my Marko)"Cheap Money" ...intro song (0:41)"mujeres en rojo" ...outro song (1:42)all instrument and vocal tracks performed by Marko Gelomusic tracks arranged and produced by Marko GeloContact Marko, he's a Mortgage Broker:604-800-9593 direct Vancouver403-606-3751 direct Calgarymarkogelo.comhomefinancingsolutions.caApply for a MortgageFacebook@markogelo (Twitter)MarkoMusic (SoundCloud Account)...all podcast music tracks are performed and produced by MarkoClick Here to download Marko's Mortgage App (information, rates, calculators, etc) See acast.com/privacy for privacy and opt-out information.

Key points:Consumer Credit Reports (Borrowell, Credit Karma, etc)...why can't brokers accept your free reports?When it comes to mortgages, credit reports are reviewed from a very broad perspective - way more to it then just the actual scoreAvoid deferring your broker/banker from checking your credit score...do it sooner rather than laterlearn about the 3 golden tips that are sure to increase your credit score within a short period of time (avoid exceeding 60% of your approved credit limit, pay on time and avoid problematic disputes with creditors)Marko Gelo Garage Band Sessions: (produced and performed my Marko)"Cheap Money" ...intro song (0:41)"CSharp" ...full version (1:34)all instrument and vocal tracks performed by Marko Gelomusic tracks arranged and produced by Marko GeloContact Marko, he's a Mortgage Broker:604-800-9593 direct Vancouver403-606-3751 direct Calgarymarkogelo.comhomefinancingsolutions.caApply for a MortgageFacebook@markogelo (Twitter)MarkoMusic (SoundCloud Account).

An overview of key points when qualifying for a mortgage in Canada, and what to expect:Key points:The Application Process: Old School and New School processes The Qualification Process: An overview of some key qualification guidelines Getting the best rates: there's more to it than you thinkALSO INCLUDED: a Marko-Gelo-Garage-Band creation!Marko Gelo Garage Band Sessions: (produced and performed my Marko)"Cheap Money" ...intro song (0:41)"Disconnected" ...full version (1:39)all instrument and vocal tracks performed by Marko Gelomusic tracks arranged and produced by Marko GeloContact Marko, he's a Mortgage Broker:604-800-9593 direct Vancouver403-606-3751 direct Calgarymarkogelo.comhomefinancingsolutions.caApply for a MortgageFacebook@markogelo (Twitter)MarkoMusic (SoundCloud Account)...all podcast music tracks are performed and produced by MarkoClick Here to download Marko's Mortgage App (information, rates, calculators, etc) See acast.com/privacy for privacy and opt-out informatio

Why is it that banks differ in how much mortgage they approve you for? Even though all banks use the same qualification formulas, there are some banks that have additional boosters that can propel you to higher qualification amounts. Key points:Mortgage Approval Pro Tip #1: Down Payment and Amortization affect your maximum mortgage amount Mortgage Approval Pro Tip #2: After income, debt is the next major mortgage qualification killerMortgage Approval Pro Tip #3: Avoid using CMHC if you want to qualify for the absolute maximum mortgageMortgage Approval Pro Tip #4: Be aware of non-income qualification boosterslisten to the complete episode for more details!ALSO INCLUDED: an Marko-Gelo-Garage-Band creationMarko Gelo Garage Band Sessions: (produced and performed my Marko)"Cheap Money" ...intro song (0:41)"GeorgeQ" ...outro song, full version (1:57)all instrument and vocal tracks performed by Marko Gelomusic tracks arranged and produced by Marko GeloContact Marko, he's a Mortgage Broker:604-800-9593 di

How mortgages will play a key role in how Canada's financial system rebounds in the post-COVID era.Ready or not, here we go.Key points:8 weeks in isolation and the resulting impact on mortgage qualification and Canada's financial systemCanada's life saver...our general conservative nature (move ahead with caution approach)yesterday's compromises will be today's toolseverything is political...except mortgage qualificationis the next industrial revolution upon us? ...one economist thinks solisten to the complete episode for more details!ALSO INCLUDED: an unfinished Marko-Gelo-Garage-Band creation (sneak-peak)Marko Gelo Garage Band Sessions: (produced and performed my Marko)"Cheap Money" ...intro song (0:41)"GeorgeO" ...outro song, instrumental version (1:57)all instrument and vocal tracks performed by Marko Gelomusic tracks arranged and produced by Marko GeloContact Marko, he's a Mortgage Broker:604-800-9593 direct Vancouver403-606-3751 direct Calgarymarkogelo.comhomefinancingsolutions.caApply fo

Key points:behind the scenes with (COVID19) appraisal procedures and value determinationunderstanding the impact of loan-to-value ratios on your mortgage qualificationpreparation for your appraisal during COVID19real estate value trends since COVID outbreakact now, or later?listen to the episode for more details!ALSO INCLUDED: past Marko-Gelo-Garage-Band creationsGuest Contact: No GuestsMarko Gelo Garage Band Sessions: (produced and performed my Marko)"Cheap Money" ...intro song (0:41)"Economies of Scale" ...outro song (1:09)all vocal tracks performed by Marko Gelomusic tracks arranged and produced by Marko GeloContact Marko, he's a Mortgage Broker:604-800-9593 direct Vancouver403-606-3751 direct Calgarymarkogelo.comhomefinancingsolutions.caApply for a MortgageFacebook@markogelo (Twitter)MarkoMusic (SoundCloud Account)...all podcast music tracks are performed and produced by MarkoClick Here to download Marko's Mortgage App (information, rates, calculators, etc) See acast.com

Key points:access to fully discounted interest rates - not POSTED RATESability to move to another lender without penaltyoption to change the terms and features of your new mortgageoption to pay off any lingering debt without incurring any break feeshow to become fully optimized and prepared for your mortgage renewal with minimal effortlisten to the episode for more details!ALSO INCLUDED: a brand new Marko-Gelo-Garage-Band song...check it out. "Sunday Nights"Guest Contact: No GuestsMarko Gelo Garage Band Sessions: (produced and performed my Marko)"Sunday Nights" ...intro song (1:56)all vocal tracks performed by Marko Gelomusic tracks arranged and produced by Marko GeloContact Marko, he's a Mortgage Broker:604-800-9593 direct Vancouver403-606-3751 direct Calgarymarkogelo.comhomefinancingsolutions.caApply for a MortgageFacebook@markogelo (Twitter)MarkoMusic (SoundCloud Account)...all podcast music tracks are performed and produced by MarkoClick Here to download Marko's Mortgag

Key points:when bond yields go down, mortgage rates are supposed to follow...not these daysif Prime Rate goes down, do fixed rates also go down?where are interest rates in Canada headed?What is the "Bank of Canada" and what is its purpose?how to capture the best interest rate for your upcoming mortgage renewallisten to the episode for more details!Guest Contact: No GuestsMarko Gelo Garage Band Sessions: (produced and performed my Marko)"23 days in Berlin" ...intro song (1:17)all vocal tracks performed by Marko Gelomusic tracks arranged and produced by Marko GeloContact Marko, he's a Mortgage Broker:604-800-9593 direct Vancouver403-606-3751 direct Calgarymarkogelo.comhomefinancingsolutions.caApply for a MortgageFacebook@markogelo (Twitter)MarkoMusic (SoundCloud Account)...all podcast music tracks are performed and produced by MarkoClick Here to download Marko's Mortgage App (information, rates, calculators, etc) See acast.com/privacy for privacy and opt-out information.

Key points:YES - most Canadian banks are making the ability to defer your mortgage payments available for eligible applicantsYES - the ability to defer for UP TO 6 months seems to be the generally promoted tenure of deferring your paymentsYES - for those that are anticipating hardship, you need to inquire and apply with, or at the very least inform your lender that you may possibly be defaulting on your next payment. Whatever you do, don’t do ABSOLUTELY NOTHING. If you have already missed a mortgage payment and haven’t had the chance to be proactive about it, continue on the path and try to reach them to explain your situation and proceed to formally apply for the programYES - lack of action from you PRIOR to your first missed mortgage payment will likely impact your credit score. The key is to be forthcoming and proactive - I can’t stress this enough.YES - you will be on the phone or waiting for an online response for a very long time...this is normalYES - you may possibly have to re-apply for the

Subtitle4 reasons to use a mortgage brokerSummaryKey points:the Big 5 Banks in Canada...how many other lenders are there?4 reasons to use a mortgage broker: (i) there's always a Plan B (ii) engage lenders to compete for your business (iii) interpreting the fine print of all lenders (iv) you won't know what you don't knowand much more..Guest Contact: n/aMarko Gelo Garage Band Sessions: (produced and performed my Marko)"ManicPanic" ...intro songContact Marko, he's a Mortgage Broker:604-800-9593 direct Vancouver403-606-3751 direct Calgarymarkogelo.comFacebook@markogelo (Twitter)MarkoMusic (SoundCloud Account)...all podcast music tracks are performed and produced by MarkoClick Here to download Marko's Mortgage App (information, rates, calculators, etc) See acast.com/privacy for privacy and opt-out information.

Key points:average Canadian owes $1.78 for every $1 earnedwhat happens to your credit when: you are behind in payments, your credit card is max'dreach out for a consultation sooner than later - when it comes to credit, time is always of the essenceapplications and examples of consumer proposalsyou can still qualify for a mortgage if you had a consumer proposal or even if you've been bankruptand much more..Guest Contact: Michael Goldenberg (Debt Care Canada): 1-888-890-0888 phone, mgoldenberg@debtcare.caMarko Gelo Garage Band Sessions: (produced and performed my Marko)"and now for the guest of the show" ...guitar, vocals (lead and harmony), Apple Garage Band loops"sunny days"...outro track, acoustic guitar, bass guitar, drums, keyboardContact Marko, he's a Mortgage Broker:604-800-9593 direct Vancouver403-606-3751 direct Calgarymarkogelo.comFacebook@markogelo (Twitter)MarkoMusic (SoundCloud Account)...all podcast music tracks are performed and produced by MarkoClick Here&