Wendy Goodsir’s Blog ~ Mortgage Associate

Budget 2009 proposes to introduce a new non-refundable tax credit based on an amount of $5,000 for first-time home buyers who acquire a qualifying home after January 27, 2009 (i.e. the closing is after that date). The credit for a taxation year will be calculated by reference to the lowest personal income tax rate for the year and is claimable for the taxation year in which the home is acquired.

An individual will be considered a first-time home buyer if neither the individual nor the individual’s spouse or common-law partner owned and lived in another home in the calendar year of the home purchase or in any of the four preceding calendar years. A qualifying home is one that is currently eligible for the Home Buyers’ Plan that the individual or individual’s spouse or common-law partner intends to occupy as the principal place of residence not later than one year after its acquisition.

Budget 2009 also proposes that the credit be available for certain acquisitions of a home by or for the benefit of an individual who is eligible for the disability tax credit (DTC). In particular, the credit will be available in respect of a home acquired after January 27, 2009 (i.e. the closing is after that date) by an individual who is eligible for the DTC, or by an individual for the benefit of a related individual who is DTC-eligible, if the home is acquired to enable the DTC-eligible individual to live in a more accessible dwelling or in an environment better suited to the personal needs and care of that person.

For the purpose of this credit, a “DTC–eligible” individual is an individual in respect of whom an amount is deductible under the DTC for the taxation year in which the agreement to acquire the home is entered into, or would be deductible if costs for an attendant or care in a nursing home were not claimed for Medical Expense Tax Credit purposes by or on behalf of that person. Where the home is acquired by or for the benefit of a DTC-eligible individual, the home must be intended to be the principal place of residence of that individual no later than one year after its acquisition.

The credit may be claimed by the individual who acquires the home or by that individual’s spouse or common-law partner. For the purpose of this credit, a home is considered to be acquired by an individual only if the individual’s interest in the home is registered in accordance with the applicable land registration system.

Any unused portion of an individual’s First-Time Home Buyers’ Tax Credit may be claimed by the individual’s spouse or common-law partner. Where more than one individual is entitled to the First-Time Home Buyers’ Tax Credit (for example, where two individuals jointly buy a home), the total amount of the credits claimable for the year by those individuals shall not exceed the maximum amount of the credit that would be claimable for the year by any one of those individuals.

Wendy Goodsir

Mortgage Associate

MortgageBrokers.com

403-540-6244

wgoodsir@mortgagebrokers.com

Apply on line — www.mortgagebrokers.com/wgoodsir

Mortgage Interest Rates as of February 20, 2009

Term                              Best Rates           Posted Rates

6 Months                            5.20%                   6.35%

1 Year                                3.50%                   5.50%

2 Year                                4.75%                   5.80%

3 Year                                4.75%                   5.75%

4 Year                                4.29%                   6.05%

5 Year                                4.29%                   6.45%

Variable Rate                     3.80%                   4.00%

Call today!

403-540-6244

wgoodsir@mortgagebrokers.com

Ask me about down payment options

Are you looking to purchase a new home? Re-new your existing mortgage or maybe looking to refiance, it would be wise to utilize the services of myself, your Mortgage Broker to ensure you get yourself the best interest rate possible.  My role will be to act as a liaison between you and the lender providing you with the best rate and service available.  I do not work strict business hours, so you can feel free to contact me whenever the need arises.
At the moment, RBC, CIBC and BMO all have a 5 year fixed posted rate of 6.45%. If you were to work with me, you could currently receive an interest rate of 4.39%! (02-13-2009 OAC)
What does this mean? On a $250,000 mortgage amortized over 25 years with a 5 year term, your payment difference between 6.45% and 4.39% equates to $288.55 in savings per month! Even more important, over the same 5 year term you would also save $24,811 in interest! That $24,811 could be used for other investments over the 5 year term which would put even more money in your pocket! So, if you require mortgage assistance or have any questions please don’t hesitate to give me a call!  (rates are subject to change also subject to credit approval)

Call me TODAY and let’s discuss…………

Cut them dramatically…..

Many of us have the burden of high interest credit cards & loans that eat away a large amount of our monthly income. This leaves us with very little at the end of the month and the feeling of never getting ahead of the game.

Use the equity in your home to get out of this rut and consolidate. At the moment interest rates are at historic lows. You can take advantage today and save your self nothing but time, money and stress.

Take a look at this example:
Current Situation:
$165,000 mortgage @ 5.74% = 1,030.32 Monthly
$ 45,000 in credit cards & loans at an average interest rate of 25%

After Consolidation:
$210,000 new mortgage at 4.39% (O.A.C.)
Total monthly payments of $1,155.23
Savings of $1,475.09 per month

Everyones situation is different, I can help.

Send an email today with any questions or APPLY online at www.mortgagebrokers.com/wgoodsir

Wendy Goodsir
Mortgage Associate
MortgageBrokers.com
403-540-6244
wgoodsir@mortgagebrokers.com

Mortgage Interest Rates

as of

January 21,2009

Term                              Best Rates           Posted Rates

6 Months                            5.20%                   5.90%

1 Year                                3.50%                   5.50%

2 Year                                4.90%                   5.80%

3 Year                                4.95%                   5.75%

4 Year                                4.39%                   6.05%

5 Year                                4.49%                   6.45%

Variable Rate                     3.80%                   4.00%

Refinance or purchase today with interest rates as low at 3.80%

Call today!

Ask me about down payment options ~ 100% financing available!

Mortgage Interest Rates

as of

January 16, 2009

Term                              Best Rates           Posted Rates

6 Months                            5.90%                   6.10%

1 Year                                4.00%                   4.00%

2 Year                                4.90%                   6.25%

3 Year                                4.95%                   6.25%

4 Year                                4.69%                   6.09%

5 Year                                4.69%                   6.75%

Variable Rate                     4.30%                   4.50%

**Rates are subject to change with out notice and OAC

Are you looking to purchase a new home?  If so, it would be wise to utilize the services of myself your Mortgage Broker to ensure you get yourself the best interest rate possible.  My role will be to act as a liaison between you and the lender providing you with the best rate and service available.  I do not work strict business hours, so you can feel free to contact me whenever the need arises.
At the moment, RBC, CIBC and BMO all have a 5 year fixed posted rate of 6.75%. If you were to work with me, you could currently receive an interest rate of 4.69%! (01-16-2009)
What does this mean? On a $250,000 mortgage amortized over 25 years with a 5 year term, your payment difference between 6.75% and 4.69% equates to $302.41 in savings per month! Even more important, over the same 5 year term you would also save $24,854 in interest! That $24,854 could be used for other investments over the 5 year term which would put even more money in your pocket! So, if you require mortgage assistance or have any questions please don’t hesitate to give me a call!  (rates are subject to change also subject to credit approval)

Call me TODAY and lets discuss your situation!

Wendy Goodsir

wgoodsir@mortgagebrokers.com

403-540-6244

The reasons for claiming bankruptcy are many and varied:  job loss, separation and divorce, a failed business, and financial mismanagement are some of the common ones. 

A bankruptcy is not something that goes away quickly.  In fact, a personal bankruptcy stays on a personal credit bureau for 7 years (14 years for a double).  But does a bankruptcy mean that a person has abandon the dream of homeownership?  The simple answer:  No.  With a good mortgage broker and the right lender, there is light at the end of the tunnel for those people who have landed in the red one too-many times.

Canadian mortgage lenders look at several considerations when assessing to lend money to someone with a bankruptcy on his/her credit bureau.  They look at how long ago the bankruptcy occurred and usually require an explanation of the events leading up to the financial problems.  Lenders are also concerned with the length of time since discharge.  High up on the list are the applicant’s reasons why he/she is going to stay clear of financial woes in the future.  Finally, the lender wants to see that the client has re-established credit.   But this requirement begs the question:  how do I re-establish my credit when I have a bankruptcy on my report card?  Won’t a creditor run a check every time I apply for plastic or a loan?

The answer to that question:  “Yes.”  But just as your financial problems were not created overnight, it only stands to reason that they will not be solved in the space of one day.  You need to baby-step your way along the path of financial recovery.  Here are a few helpful tips.  Apply for a credit card with a small limit, even as low as $200.  The goal is to use the card (but do not go over the limit) and pay it off every month.  After perhaps 3- months, call the card issuer and ask for an increase.  Another option is to get what is called a secured card.  This is not like a line of credit which is secured against a property; instead, the lender issues a credit card in return for the borrower depositing a sum of money equaling the credit limit on the card.  For example, the borrower may opt to deposit $500 with the lender who in turn issues a credit card with a $500 limit.   Here again the strategy is to use the card and make payments – on time, of course!  This credit activity helps re-develop credit and causes the beacon score to rebound.  This score, or what it represents, is key to most lenders guidelines on lending mortgage money to previously bankrupt clients.                  

Bankruptcy policy on mortgage lending is as varied as the lenders themselves.  There are a few lenders who will finance clients who have not been discharged their personal bankruptcies.  If you would like to refinance your principal residence or purchase with a 25% down payment, there may be a private investor willing to provide some mortgage financing.  If you have a 15% down payment (gifted or borrowed) you may likely qualify for a mortgage after being discharged for only 1 day.  No re-established credit is necessary. 

But, as previously mentioned, you usually need to be discharged for at least 2 years and have some rebuilt credit over the period of a year, especially if you would like to purchase with only 5% down.  You will be looking at paying a rate of 8%.  But that beats paying expensive rent in a rising market, I think.  In so far as the 5 major banks are concerned, they usually require that the client be discharged for 3 years and then have 2 years of re-established credit.  And you can get the same good rates as someone who did not have any credit issues in the past. 

I want to say that I have seen clients claim bankruptcy and then make a spectacular comeback 3-4 years later.  So don’t give up.  (Remember that failure is not in the fall, but in the unwillingness to try again).  And keep in mind that a good mortgage agent can help speed up the financial recovery.  After all, we are the lending experts.  We understand the lender’s mindset in viewing former bankrupt applicants; we have helpful tips and we have access to lenders who are willing to give someone a second chance. 

Please feel free to call or email with any questions that you may have.

Wendy Goodsir

403-540-6244