Posts filed under ‘calgary mortgage broker’
Posted: December 6, 2010 Categories: calgary mortgage broker, calgary mortgages, financial advice, mortgage advice, recession No Comments
Transitioning from renter to homeowner is one of the biggest decisions you’ll make throughout your lifetime. It can also be a stressful experience if you don’t plan ahead by building a budget and saving prior to embarking upon homeownership.
Budgeting is a core ingredient that helps alleviate the stress associated with money issues that can sometimes arise if you purchase a home without knowing all of the associated costs – including down payment, closing expenses, ongoing maintenance, taxes and utilities.
The trouble is, many first-time homeowners fail to carefully think about their finances, plan a budget or set savings aside. And in this society of instant gratification, money problems can quickly escalate.
The key is to create a realistic budget based on your goals. Track your spending and make your dollars go further by sticking to your budget once it’s in place. Budgeting offers a step-by-step formula for figuring out how to best save your hard-earned money to invest in homeownership.
Start by listing your household income, then your household expenses, and review your spending habits. All of this can be done on a pad of paper or on a computer spreadsheet.
Keeping receipts for everything that you purchase will enable you to accurately keep track of where your money is going each month so that you can review and make necessary changes to your plan on an ongoing basis.
Examine all areas of your life from entertainment to the type of food you buy, where you buy your food and clothes, and how and where you travel. Also look at your spending personality and make necessary adjustments. Are you a saver, a splurger, a spontaneous shopper or a hoarder? Become smarter with your money and avoid impulse buying.
If you find you’re spending a lot of money in one area, such as entertainment for instance, set aside a reasonable amount each month and prepare to stop spending money in this area once your budget has been exhausted.
Budgeting provides you with the opportunity to re-evaluate your needs and wants. Do you really need the magazine subscriptions, the gym membership and all the other things you may spend money on each month? Although everyone needs some “me time” to wind down, could you not get that by taking a walk or reading a good book you borrowed from the library?
If you can set your budget solidly in place before you head out home or mortgage shopping, you will be far more prepared to purchase your first home.
Following are three top tips to help you prepare for the purchase of your first home:
1. Set up a savings account. You can deposit a predetermined amount into this account each pay period that you will not touch unless it’s absolutely necessary. This will enable you to put money aside for a down payment and cover closing costs, as well as address ongoing homeownership expenses such as maintenance, taxes and utilities.
2. Save up for big-ticket items. As you accumulate money in your savings account, you will be able to also save for specific purchases to help furnish your home – avoiding the buy now, pay later mentality, which can have a negative impact on your credit when you’re seeking mortgage financing.
3. Surround yourself with a team of professionals. When you’re getting ready to make your first home purchase, enlist the services of a licensed Calgary mortgage professional and a real estate agent. These experts are invaluable to you as you set out on the road to homeownership because they help first-time buyers through the home purchase and financing processes every day. They will be able to answer all of your questions and set your mind at ease. A Calgary mortgage professional has access to multiple lenders, and can help you get pre-approved for a mortgage so you know exactly what you can afford to spend on a home before you head out house hunting, while a real estate agent will be able to match your needs with a house you can afford. Both parties will negotiate on your behalf to ensure you get the best bang for your buck. And, best of all, these services are typically free. They will also be able to refer you to other reputable professionals you may need for your home purchase, including a real estate lawyer and home appraiser.
About the Purcell Mortgage Team:
The Purcell Mortgage Team are an industry-leading pair of mortgage professionals who have been serving Calgary for several years. JoAnne Purcell was ranked within the Top 50 Canadian Mortgage Professionals in the CMP Magazine. If you are in need a reputable calgary mortgage professional, please contact us today!
The Purcell Mortgage Team are experts on Calgary mortgages!
Posted: October 15, 2010 Categories: calgary mortgage broker, calgary mortgages, economy, financial advice, mortgage advice, recession No Comments
In today’s economic climate of tighter credit requirements and increased unemployment rates taking their toll on some Canadians, there’s no doubt that many people may not fit into the traditional banks’ financing boxes as easily as they may have just a year ago.
Your best solution is to consult your mortgage professional to determine whether your situation can be quickly repaired or if you face a longer road to credit recovery. Either way, there are solutions to every problem.
Mortgage professionals who are experts in the credit repair niche can help credit challenged clients improve their situations via a number of routes. And if the situation is beyond the expertise of a mortgage professional, they can help you get in touch with other professionals, including credit counsellors and bankruptcy trustees.
If you have some equity built up in your home and still have a manageable credit score, for instance, you can often refinance your mortgage and use that money to pay off high-interest credit card debt. By clearing up this debt, you are freeing up more cash flow each month.
In the current lending environment, with interest rates at an all-time low, now is an ideal time for you to refinance your mortgage and possibly save thousands of dollars per year, enabling you to pay more money per month towards the principal on your mortgage as opposed to the interest – which, in turn, can help build equity quicker.
Following are five steps you can use to help attain a speedy credit score boost:
1) Pay down credit cards. The number one way to increase your credit score is to pay down your credit cards so you’re only using 30% of your limits. Revolving credit like credit cards seems to have a more significant impact on credit scores than car loans, lines of credit, and so on.
2) Limit the use of credit cards. Racking up a large amount and then paying it off in monthly instalments can hurt your credit score. If there is a balance at the end of the month, this affects your score – credit formulas don’t take into account the fact that you may have paid the balance off the next month.
3) Check credit limits. If your lender is slower at reporting monthly transactions, this can have a significant impact on how other lenders may view your file. Ensure everything’s up to date as old bills that have been paid can come back to haunt you.
Some financial institutions don’t even report your maximum limits. As such, the credit bureau is left to only use the balance that’s on hand. The problem is, if you consistently charge the same amount each month – say $1,000 to $1,500 – it may appear to the credit-scoring agencies that you’re regularly maxing out your cards.
The best bet is to pay your balances down or off before your statement periods close.
4) Keep old cards. Older credit is better credit. If you stop using older credit cards, the issuers may stop updating your accounts. As such, the cards can lose their weight in the credit formula and, therefore, may not be as valuable – even though you have had the cards for a long time. You should use these cards periodically and then pay them off.
5) Don’t let mistakes build up. You should always dispute any mistakes or situations that may harm your score. If, for instance, a cell phone bill is incorrect and the company will not amend it, you can dispute this by making the credit bureau aware of the situation.
If, however, you have repeatedly missed payments on your credit cards, you may not be in a situation where refinancing or quickly boosting your credit score will be possible. Depending on the severity of your situation – and the reasons behind the delinquencies, including job loss, divorce, illness, and so on – your Dominion Lending Centres mortgage professional can help you address the concerns through a variety of means and even refer you to other professionals to help get your credit situation in check.
About the Purcell Mortgage Team:
The Purcell Mortgage Team are an industry-leading pair of mortgage professionals who have been serving Calgary for several years. JoAnne Purcell was ranked within the Top 50 Canadian Mortgage Professionals in the CMP Magazine. If you are in need a reputable calgary mortgage professional, please contact us today!
The Purcell Mortgage Team are experts on Calgary mortgages!
Posted: September 10, 2010 Categories: calgary mortgage broker, calgary mortgages, financial advice, mortgage advice No Comments
Hybrid mortgages – also known as 50/50 mortgage products – include an equal mix of fixed-rate and variable-rate components within your single mortgage. This means you get the best of both worlds – the security of fixed repayments with the flexibility of a variable rate.
Although there was a time in recent years when mortgage experts considered a variable-rate mortgage as the obvious choice to save mortgage consumers money over the long term, with fixed rates remaining near historic lows, a 50/50 mortgage may be a great alternative for you.
In essence, since it’s extremely difficult to accurately predict rates over the long term, a 50/50 mortgage offers interest rate diversification, which can help reduce your level of risk.
If you opt for a 50/50 product, half of your mortgage is locked into a five-year fixed rate and half is at a five-year variable rate. You can lock in your variable-rate portion at any time without paying a penalty. As well, each portion of the 50/50 mortgage operates independently – like two separate mortgages – yet the product is registered as only one collateral charge.
The 50/50 mortgage product is well-suited to a variety of borrowers, including those who:
- Would normally go fully variable but are afraid prime rate is at its bottom
- Aren’t comfortable being locked into a fully fixed rate
- Can’t decide between a fixed or variable mortgage
- Savvy first-time homebuyers
Some features of the 50/50 mortgage include:
- 20% annual lump-sum pre-payment privileges
- 20% annual payment increase ability
- Portability (the option to transfer your existing loan amount to a new property without penalty)
As the 50/50 option is a fairly new offering, according to a recent study by the Canadian Association of Accredited Mortgage Professionals (CAAMP), 5% of Canadian mortgage holders have 50/50 mortgages compared to 28% with variable-rate mortgages and 68% with fixed-rate mortgages. But many experts believe the 50/50 mortgage is quickly gaining momentum.
About the Purcell Mortgage Team:
The Purcell Mortgage Team are an industry-leading pair of mortgage professionals who have been serving Calgary for several years. JoAnne Purcell was ranked within the Top 50 Canadian Mortgage Professionals in the CMP Magazine. If you are in need a reputable calgary mortgage professional, please contact us today!
The Purcell Mortgage Team are experts on Calgary mortgages!
Posted: August 5, 2010 Categories: calgary mortgage broker, calgary mortgages No Comments
A big congratulations to JoAnne Purcell of the Purcell Mortgage Team for ranking with the Top 50 Mortgage Professionals in Canada.
Every year the Canadian Mortgage Professionals Magazine gathers information from Canadian Mortgage Professionals and ranks them by dollar volume of mortgages funded for the year. For 2008 and 2009 JoAnne Purcell has earned the right to say she is in Canada’s Top 50 Mortgage Professionals. On top of being ranked highly in Canada, by the same ranking system JoAnne is also considered in the Top 10 Mortgage Professionals in Alberta and the Top 3 in Calgary (CMP Top 50 List).
JoAnne has achieved status as a Top Mortgage Professional due to her continuous high level of customer service which has built hundreds of relationships and created thousands of satisfied customers over the years. JoAnne truly is a one of Calgary’s top Mortgage Professionals.
About the Purcell Mortgage Team:
The Purcell Mortgage Team are an industry-leading pair of mortgage professionals who have been serving Calgary for several years. JoAnne Purcell was ranked within the Top 50 Canadian Mortgage Professionals in the CMP Magazine. If you are in need a reputable calgary mortgage professional, please contact us today!
The Purcell Mortgage Team are experts on Calgary mortgages!
Posted: July 27, 2010 Categories: calgary mortgage broker, calgary mortgages, mortgage advice 1 Comment
At some point in their lives, most Canadians have probably asked themselves whether it is better to buy or rent a home. And purchasing a home is one of the biggest decisions most people ever make.
Ultimately, the decision is a personal choice, but it helps to look at the pros and cons of buying to determine whether home ownership is right for you.
Some advantages of buying a home
Owning a home is generally considered to be a sound, long-term investment that can provide satisfaction and security for you and your family.
Each month when you make your mortgage payment, you are building equity in your home.
Equity is the portion of the property that you actually build through your monthly payment versus the portion that you still owe the lender.
At the beginning of your mortgage, more of your payments go toward paying off the interest and less toward paying off the principal. But the longer you stay in your home and the more mortgage payments you make, the more principal you pay off and the more equity you accumulate.
Most mortgages also offer you the option of making additional monthly or annual payments to reduce your principal faster. Some prepayment privileges, for instance, enable you to pay up to 20% of the principal per calendar year. This will also help reduce your amortization period (the length of your mortgage), which, in turn, saves you money.
There is also a tax advantage. If your home is your principal residence, any profit you make when you sell it is tax-free. A home can appreciate – or increase in value – as time passes, building more equity. As you build up equity, it’s usually easier to upgrade to a more expensive home in the future thanks to the profit you’ll make when selling your current home.
As an owner, you can also decorate and improve your home any way you like. Ownership tends to give you a sense of pride and can offer you and your family stronger ties to the community.
If you do decide that home ownership is right for you, it’s important to choose a home you can afford. If you can’t afford to buy your dream home, purchasing a more modest home can be a great place to start building equity that one day may allow you to buy the home of your dreams.
Since we’re currently in a buyer’s real estate market and interest rates have been dropping, now may be an ideal time to enter into home ownership for the first time.
Some disadvantages of buying a home
Since it’s easy to get caught up in the excitement of buying a home, it’s important to remember that home ownership has some additional responsibilities as well.
For one thing, a home can be expensive. Chances are, your monthly payments will be more than what you are currently paying in rent when you factor in such things as your mortgage, property taxes, repairs and general maintenance.
Owning a home ties up some of your cash flow and is likely to reduce your flexibility to move to a new location or change jobs.
While your home might increase in value as time goes by, don’t expect to get a big return quickly. There are no guarantees that your home will increase in value, particularly during the first few years. In the beginning, you could actually lose money if you sell because your home may not have appreciated enough to cover the real estate fees, and moving, renovation and other selling costs.
Real estate is, however, usually considered a good investment over the long term.
When making the decision about whether to buy or rent, it’s important to carefully choose a home you can afford, and then weigh the pros and cons. Millions of people enjoy the rewards of home ownership but, ultimately, it’s a personal decision based on your own priorities.
If you’re thinking of buying your first home, Dominion Lending Centres mortgage professionals can answer all of your mortgage-related questions.
About the Purcell Mortgage Team:
The Purcell Mortgage Team are an industry-leading pair of mortgage professionals who have been serving Calgary for several years. JoAnne Purcell was ranked within the Top 50 Canadian Mortgage Professionals in the CMP Magazine. If you are in need a reputable calgary mortgage professional, please contact us today!
The Purcell Mortgage Team are experts on Calgary mortgages!
Posted: July 14, 2010 Categories: calgary mortgage broker, calgary mortgages, mortgage advice No Comments
There are generally two ways to get a mortgage in Canada: From a bank, or from a licensed mortgage professional.
While a bank only offers the products from their particular institution, licensed mortgage professionals send millions of dollars in mortgage business each year to Canada’s largest banks, credit unions, and trust companies … offering their clients more choice, and access to hundreds of mortgage products!
As a result, clients benefit from the trust, confidence, and security of knowing they are getting the best mortgage for their needs.
Mortgage professionals work for you, and not the banks; therefore, they work in your best interest. From the first consultation to the signing of your mortgage, their services are free. A fee is charged only for the most challenging credit solutions, and it’s especially under those circumstances that a mortgage professional can do for you what your bank cannot.
Whether you’re purchasing a home for the first time, taking out equity from your home for investment or pleasure, or your current mortgage is simply up for renewal, it’s important that you are making an educated buying decision with professional unbiased advice.
About the Purcell Mortgage Team:
The Purcell Mortgage Team are an industry-leading pair of mortgage professionals who have been serving Calgary for several years. JoAnne Purcell was ranked within the Top 50 Canadian Mortgage Professionals in the CMP Magazine. If you are in need a reputable calgary mortgage specialist, please contact us today!
The Purcell Mortgage Team are experts on Calgary mortgages!
Posted: November 22, 2009 Categories: calgary mortgage broker, calgary mortgages, contests No Comments
Dominion Lending Centres – Mortgage Services Inc.
Trip Giveaway Contest
Rules and Restrictions
Who is eligible?
Everyone who refers business that closes between October 1, 2009 to December 31, 2009 and every client that completes a mortgage that closes between October 1 and December 31, 2009.
(Dominion Lending Centres – Mortgage Services Inc. 102, 279 Midpark Way SE; Calgary, AB T2X 1M2; Associates and their immediate families are not eligible).
What is the prize?
The prize is a trip credit** valued at $2,500 that can be used anyway the winner determines to use it. (ie. All at once one trip, as two small trips, or part of a larger trip). The voucher can be used for flight, accommodations, or any other part of the trip.
How to win:
Every referral received that closes between October 1 and December 31, 2009, earns the referrer and the client one ballot into the draw. There is no limit on how many ballots one referral source can earn. On Friday, January 9, 2010 the winner will be announced.
** trip must be booked before December 31, 2010.
Posted: October 19, 2009 Categories: calgary mortgage broker, mortgage advice No Comments
Your home will likely be the largest purchase you ever make, thus it requires that you take the time to find the best loan program and the best mortgage lender to handle your home loan.
Finding the best mortgage lender is a lot like any other industry. You must ask plenty of questions and perform due diligence, ensuring that you can make an educated, well-informed decision regarding your mortgage loan.
For many home buyers, particularly first-time homebuyers, the process of finding the perfect mortgage lender can be quite daunting; even overwhelming. It pays to take your time and research all of your options so that you can be rest assured that you made the right decision.
To ensure that your mortgage loan needs are best served, follow these simple tips:
- Find the best rates. Mortgage rates are published in the daily newspaper, so you can make this resource a first stop. You can also view current mortgage rates through a variety of websites, including ours. There is simply no better way to stay abreast of all changes in the lending industry than to read the latest news, either through the newspaper or Internet.
- After you locate a lender who offers a good mortgage rate, look further into the associated fees of the loan, such as application fees, origination fees and appraisal fees. Many lenders may offer low interest rates, but once you get done paying all of the related fees you are in over your head for thousands of dollars.
- Once you have chosen a few lenders who fit the bill when it comes to mortgage rates and related fees, make sure they are a trusted lender with a solid reputation. This is not the time to find subpar lenders who may or may not have a good history of lending.
- Ask friends, family members and neighbors for mortgage lender referrals. Often times, the best way to find a great lender is through the referral of a trusted individual. Although this should certainly not be the only way in which to find a mortgage lender, it can help narrow down your search.
- Make an appointment to meet with several lenders. Now is the time to ask plenty of questions regarding their loan products and your financing needs. If the lender is inpatient with you or is difficult when it comes to answering all of your questions and addressing all of your concerns then it is best to move on.
- Ask the mortgage lender professional which loan products are best for you. A good mortgage lender will take the time to thoroughly research your loan needs so that you won’t get stuck in a loan that’s simply not suitable for your situation or budget.
- Take a first-time homebuyer course. Many first-time homebuyers choose to take a first-time homebuyer course through a local real estate company. A course in home buying should also cover the home loan process, and is often a great place to ask questions and gather information so that you can make the best decision regarding your choice of home loans. Alternatively, download our new homebuyers guide!
Or let us do your homework for you. Calgary Mortgage Brokers and Calgary Mortgage Associates do the due-diligence for you. Mortgage specialists go through the above process everyday and don’t charge the client a dime to for their effort, so call contact the Purcell Mortgage Team and let us take the guess work out finding the lender that is best for you!
About the Purcell Mortgage Team:
The Purcell Mortgage Team are an industry-leading pair of mortgage professionals who have been serving Calgary for several years. JoAnne Purcell was ranked within the Top 50 Canadian Mortgage Professionals in the CMP Magazine. If you are in need a reputable calgary mortgage broker please contact us today!
The Purcell Mortgage Team are experts on Calgary mortgages!
Posted: October 5, 2009 Categories: calgary mortgage broker, mortgage advice 1 Comment
There’s no doubt about the current credit market: mortgages are not what they used to be. Stricter lending guidelines can make your home buying experience all the more complicated – unless you prepare yourself and your credit in advance.
Before you begin perusing neighborhoods and dreaming of your first home, you should instead begin thinking about your credit. Because, let’s face it, if your credit isn’t in order, obtaining a mortgage may simply be unattainable, especially in today’s economic climate.
Don’t let this information scare you; instead, begin the road to understanding your credit so that you can be fully prepared to take on a mortgage lender and walk away with a mortgage for your first home.
The Road to a Better Credit Report
The first step is to understand that one of the first things a lender will do is review your credit report. In fact, the lender will likely pour over it with a fine-tooth comb.
What is the lender looking for? Evidence that you have managed your finances well; that you have a strong history of paying your bills on time; and that you aren’t overextended with debt.
Therefore, your first plan of attack should be to order a copy of your credit report from all three, national reporting bureaus: TransUnion, Equifax and Experian. Best of all, you are entitled to a free copy of your credit report, from all three credit agencies, on an annual basis.
How to Evaluate Your True Credit
Once you have possession of your credit reports, you will need to make sure they are accurate. This may involve quite a bit of your time, but it is necessary, as even minor errors or discrepancies on your credit report can lower your overall credit rating, thereby either preventing you from obtaining the best, possible interest rate or from obtaining a mortgage at all.
If you locate any discrepancies or errors on your credit report, it is crucial that you immediately contact the appropriate credit reporting agency, who will then investigate and hopefully resolve the issue on your credit report.
What Your Mortgage Lender Evaluates
Your mortgage lender will ultimately be looking at your FICO score, which is designed to help lenders decide whether they think you are a good credit risk. Your FICO score is comprised of several factors, including:
- Your payment history – Have you paid your debts on time?
- The total amount of your debt – Also referred to your debt-to-income ratio, or how much debt you pay out each month in relation to your overall income. Now is a good time to begin paying off as much debt as possible.
- Your credit history – A lender will look for a history of responsible credit management on your part.
There is no magical formula for determining your FICO score; instead, it is a culmination of several factors, all of which work together to give a lender a good idea of how you have managed your credit in the past, and how much debt you have taken on at any given time.
The best rule of thumb is to simply pay your bills on time, keep your debt to a minimum and check your credit reports for accuracy before applying for a mortgage so you can be ahead of the game and ready to secure a mortgage.
About the Purcell Mortgage Team:
The Purcell Mortgage Team are an industry-leading pair of mortgage professionals who have been serving Calgary for several years. JoAnne Purcell was ranked within the Top 50 Canadian Mortgage Professionals in the CMP Magazine. If you are in need a reputable calgary mortgage broker please contact us today!
The Purcell Mortgage Team are experts on Calgary mortgages!
Posted: September 23, 2009 Categories: calgary mortgage broker, mortgage advice No Comments
Interest rates sit at near-historic lows. This reason alone is compelling enough for many people to make the transition from renting to ownership. If that’s you, congratulations! You have many factors working for you right now: plenty of homes available for purchase, low interest rates, and the fact that many homeowners are looking to sell now (and are very negotiable as a result).
Mortgage Requirements Have Been Tightened
Do you recall the attitude that existed several years ago when mortgages were being handed out faster than Halloween candy? Unfortunately, the “money for all” approach that many lenders had simply doesn’t exist today. The market “crash”, along with tightened access to credit, have changed the way many people will be able to obtain a mortgage.
However, that doesn’t make it impossible. It simply means that, in regards to applying for a mortgage, you need to have everything in order. Your calgary mortgage broker will be able to provide more information in detail.
Preparing for Your Mortgage Application: Four Essential Steps
The golden rule here is to think ahead. Don’t disillusion yourself into believing that you can have everything prepared in a matter of hours or days. When you are dealing with multiple contacts across a variety of businesses, things can take days, weeks, or months to materialize properly. Thinking ahead and organizing everything a month or two in advance can save you equal that in frustration.
Thinking ahead is actually pretty easy. All you have to do is:
- Know your lendability - Order a copy of your credit report from the major bureaus so that you know what your credit score is. If it’s good (above 650), great! If it isn’t (below 600), work on getting it better (lower debt, pay bills on time, pay more than minimums, etc.). Reducing your debt-to-income ratio before you apply for a mortgage is always a good idea (lenders are looking at your debt-to-income ratio more than ever now).
- Gather all necessary documentation - Proof of income, down-payment source, bank statements, bills, insurance, etc. The sooner you have it the more prepared you are.
- Freeze all credit gathering until after the mortgage process – Applying for credit makes you more of a risk to a lender. This is especially true when the lender could possibly provide you with hundreds of thousands of dollars. Don’t apply for a new credit card until after you have your mortgage.
- Remain stable, accessible, and trackable - Not you specifically, but the source of where your money is coming from. Lenders will want to see your down-payment in a location that is verifiable, such as a guaranteed investment account or savings account. They’ll also want to see that your day-to-day lifestyle is sustainable, and the addition of a mortgage won’t create too much financial risk.
Taking the time to gather your financial documents and proof of good candidacy is essential. A mortgage broker that specializes in Calgary mortgages is key in streamlining this process for you.
About the Purcell Mortgage Team:
The Purcell Mortgage Team are an industry-leading pair of mortgage professionals who have been serving Calgary for several years. JoAnne Purcell was ranked within the Top 50 Canadian Mortgage Professionals in the CMP Magazine. If you are in need a reputable calgary mortgage broker please contact us today!
The Purcell Mortgage Team are experts on Calgary mortgages!
JoAnne Purcell, AMP