FAQ on getting a mortgage

FAQ Sheet on Getting a Mortgage

Getting a mortgage is a big thing. For first time buyers this can be a tough and complicated process. Here are some common questions that get asked and some answers that may help with your mortgage application process.

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Q: What is the minimum down payment on a home in BC?

A: A minimum down payment for someone who is fully income qualified is five per cent. However, if the purchase price of a property is over $500K, a minimum down payment of five per cent on the first $500K is required. After that, you will be required to come up with 10 per cent on the remaining amount. For example: The down payment for a property valued at $600K would be five per cent of $500K ($25K) plus…

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Things to Consider When Buying an Acreage or Country Property

Want to buy an acreage? Need more information?

Finding the right acreage for you will provide years of enjoyment. Make sure that pretty piece of land will support your vision. Read on or click below to jump to the subjects:

• Financing for acreage
• Consider the services
• Maintenance and insurance
• Covenants and Zoning
• Tips
• Develop it yourself

More and more people are leaving the suburbs to live a country life, but buying an acreage is a little different than buying a house in the burbs. Buyers should investigate a number of things on the property, assuring them that the land they purchase is going to support the lifestyle they have envisioned.

Danielle lives on an acreage in Kamloops BC, give her a call to let her guide you on…

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How a simple credit error can ruin your home-owning dream

Imagine the anxiety of watching your credit score unexpectedly plummet after spending your entire adult life maintaining good credit.

Now suppose this credit decline blocks you from getting a mortgage on the house you planned to buy. That’s precisely what happens to mortgage applicants all across the country with surprising frequency.

All too often the culprit is unpaid phone bills. In some case's cellphone providers send  accounts to a collection agency after being just more than a month late. That can cause credit score to drop like a lead pickle, approximately 80 points (out of a theoretical 900) virtually overnight.

It never should happen that way or should it? Collections are meant for people who can’t or don’t want to pay their debts right?…

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How to Calculate Your Mortgage Affordability

For many first time home buyers, one of the most confusing – and frustrating – parts of the purchasing process is knowing how much mortgage they’ll qualify for.

While it’s always a smart idea to get a pre-approval before embarking on the house hunt, they are usually a more conservative estimate of your affordable home purchase range. Buyers paying less than 20% own must now also factor in the Bank of Canada’s 4.64% stress test, regardless of the mortgage rate they actually qualify for.

Related: Are there other options if I fail the stress test?

What do Mortgage Lenders Look At?

While the size of your down payment will certainly impact your mortgage qualification, other factors such as debt levels, income and credit score are closely…

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What Home Sellers Should Know About New Capital Gains Tax Rules

As this year’s tax deadline approaches, recent home sellers should take note of a new rule introduced by Ottawa last year.

Canadians now have to report the sale of their principal residence on their tax return to the Canada Revenue Agency.

The sale is still exempt from the 50% capital gains tax, provided it meets all of the guidelines outlined by the CRA. But while in the past the sale of a principal residence did not need to be flagged, home sellers are now required to provide details of the sale – including the address, the year it was bought and how much it sold for – on their tax return form.

Although the administrative change wasn’t announced until Oct. 3, it applies to all sales that took place in 2016, as well as going forward.

Read…

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What are BC Home Hunters’ Must-Haves? You May Be Surprised...

After price, surely people prioritize home size, bedrooms and location, right? A recent survey of BC residents says a surprising feature is more important

When it comes to must-haves in buying or renting a home, a recent survey of BC residents says that, after the price, there is one other thing more important than the number of bedrooms, size or location – and that’s private outdoor space.

According to a survey carried out by Insights West on behalf of Resonance Consulting, and presented to an Urban Development Institute seminar January 24, the key home feature to BC residents is the price. Eight out of 10 respondents identified cost as their most important feature, and it was the top concern of each of the individual age groups, which breaks down…

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B.C. real estate reform: What you need to know

You will have heard about the changes to British Columbia real estate laws

The British Columbia government is in the midst of a wide-ranging overhaul of how the housing market is regulated and taxed, amid growing concerns that foreign ownership, rampant speculation and unscrupulous real estate agents are fueling an affordability crisis.

On Aug. 2 2016, a 15-per-cent tax took effect for home purchases in the Metro Vancouver area involving foreigners. During the past several months, the province has also announced an end to self-regulation, largely in response to a series of Globe and Mail investigations into questionable practices within the industry. This has included a tax on vacant homes in the City of Vancouver.

These are in addition to what…

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To rent or buy? That is the question

Most Canadians dream about buying and owning their first home

A significant rite of passage, buying a home is not only a big financial deal, it's a big life deal.

Most people assume it's better to buy a home than to rent, and to be honest, I have a bias toward home ownership, too. That being said, I have counseled people on the merits of renting. But there are circumstances where renting maybe better for you.

RENT OR OWN

Every new homebuyer should first understand the differences between "renting and saving" and "buying and owning."

For most people, renting is better on cash flow, not just because mortgage payments are often higher (although with the current interest rates that may not be the case) than rent but because of all the other…

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Fast Facts About Kamloops, British Columbia

Considering moving to Kamloops BC?

Or do you live here and want to know more about your town? Checkout some of these Kamloops BC facts.

Population Data

Population - 85,678

Growth Rate - 6.6%

Unemployment Rate - August 2016 - 6.8%

(Source: Venture Kamloops 2015)

Climate Facts

Annual Hours of Sunshine - over 2,000 hours annually

Mean Maximum Temperature: 26.94°C

Mean Minimum Temperature: (-4.2°C)

Growing Season - 166 days

Annual Rainfall - 279 mm

Annual Snowfall - 75.5 cm

Elevation - 347 m (1,140 ft) (Thompson River Intake)

Visit some Kamloops Webcams

Major Employers

Interior Health Authority - 3398 (2014)

Thompson Rivers University - 1149

School District #73 - 1898

Highland Valley Copper Mine…

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CMHC raising mortgage insurance premiums for new buyers

OTTAWA, ON. – The Canada Mortgage and Housing Corporation is raising the cost of mortgage loan insurance for new home buyers effective March 17th. The Crown Corporation estimates the increases will add about $5 to a monthly mortgage payment for its average home buyer.

TO READ THE FULL NEWS RELEASE CLICK HERE

Regulatory requirements that came into effect on Jan. 1 that require mortgage insurers to hold additional capital. The premiums are calculated based on the loan-to-value ratio of the mortgage being insured. The size of the increase in rates depends on that ratio.

For instance, new homeowners who make a down payment between five to 9.99 per cent can expect an increase of $6.59 to their monthly mortgage if their loan is $350,000.

For the…

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