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!

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!

Planning for the future and potential job loss is one of the most important undertakings you can make to ensure you can pay your mortgage in an uncertain economy.

Dominion Lending Centres Mortgage Professionals often suggest you put money aside each pay period so you can place six to 12 months’ worth of mortgage payments into a short-term GIC as security for a possible job loss.

And, best of all, if your job remains secure, you can take the money out of your GIC and make a pre-payment back on your mortgage on your anniversary date, which can end up saving you thousands of dollars in interest payments.

Refinancing to access your home’s equity

But if it’s not plausible to save money each pay period, refinancing to access the equity you’ve already built up in your home is another valid option for planning ahead in uncertain times.

In addition to freeing up money to store future mortgage payments in a GIC, some of the money can also be used to pay off high-interest debt – such as credit cards – and get you and your family off to a fresh financial start.

You will find that taking equity out of your home to pay off high-interest debt can put more money in your bank account each month.

And since interest rates are at historic lows, switching to a lower rate may save you a lot of money – possibly thousands of dollars per year.

There are penalties for paying your mortgage loan out prior to renewal, but these could be offset by the extra money you acquire through a refinance.

With access to more money, you will be better able to manage your debt. Refinancing your first mortgage and taking some existing equity out could also enable you to make other investments, go on vacation, do some renovations or even invest in your children’s education.

Keep in mind, however, that by refinancing you may extend the time it will take to pay off your mortgage.

Options for paying your mortgage down quicker

There are many ways to pay down your mortgage sooner that could save you thousands of dollars in interest payments throughout the term of your mortgage.

Most mortgage products, for instance, include prepayment privileges that enable you to pay up to 20% of the principal (the true value of your mortgage minus the interest payments) per calendar year. This will also help reduce your amortization period (the length of your mortgage), which, in turn, saves you money.

Another way to lower the time it takes to pay off your mortgage involves changing the way you make your payments by opting for accelerated bi-weekly mortgage payments. Not to be confused with semi-monthly mortgage payments (24 payments per year), accelerated bi-weekly mortgage payments (26 payments per year) will not only pay your mortgage off quicker, but it’s guaranteed to save you a significant amount of money over the term of your mortgage.

If, for instance, you have a $100,000 mortgage, an interest rate of 5% and an amortization period of 25 years, your monthly mortgage payment would be $581.60 and your total payments for a year would be $6,979.20 ($581.60 x 12).

To understand the savings accelerated bi-weekly mortgage payments can make, take the monthly mortgage payment of $581.60 and divide it by two ($581.60 ÷ 2 = $290.80).  Next, take that payment and multiple it by 26 to arrive at your total payments for the year ($290.80 x 26 = $7,560.80).

As you can see, by using the monthly mortgage payment plan, you’ve made payments totalling $6,979.20 for the year, while using the accelerated bi-weekly mortgage plan you’ve made payments totalling $7,560.80 – a difference of $581.60.

Basically, with accelerated bi-weekly mortgage payments, you’re making one additional monthly payment per year.

Using this example, you would reduce the amortization on your $100,000 mortgage from 25 years to just over 21 years and your total savings on interest over the life of the mortgage would be just over $12,000.

By refinancing now and paying off your debt or putting money aside for future mortgage payments, you can put yourself and your family in a better financial position.

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!

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!

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.

• New home construction - No matter which end of the city you reside in, new areas are going up.  Calgary is still expanding its borders as it adds new suburbs to its mix.  This article by the Calgary Herald sheds some light on the surprisingly good performance in the housing market for the last three months, and this article (also by the Calgary Herald) makes mention of the new community going up in Airdrie.

• New infastructure - While the ring road may be experiencing a bit of a roadblock, there’s no denying that the City of Calgary is spending lots of money on bringing its infrastructure up to par.  This, aside from being a significant economic stimulant in its own right, will make Calgary more accessible.

• The economy is stabilizing - Yes, there are many reports that the economy is still sluggish, but it’s also showing signs of stability.  As long as you have prepared yourself financially (see related posts: here, here, and here) there is little to fear at this point.  The contractions are happening, but unlike what happened in late 2007/early 2008, most of the downsizing has already taken place.  In fact, unemployment has fallen by 0.3%.

Keep a watchful eye on the market if you’re thinking about making a purchase.  Now may be a great time to take advantage of good interest rates and plenty of availability- you never know just how long it will last.

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!

Before Christmas arrives many people take a few days to review their financial position and determine what kind of financial shape they’re in.  If you’re like us, or anyone else for that matter, how much you spend during th Christmas season is completely dependent on the figures in your bank account.  Some have the luxury of a limitless budget, but for the rest of us a little bit of careful planning can go a long way.

Budgeting Around Your Mortgage

Many people budget around their “rent”, or the cost of their mortgage payment and nothing else.  What people fail to realize is that there are many more expenses tied into your home than just your mortgage payment.  Mortgage-related expenses, such as property taxes, can creep up on you when you least expect it.  If you are a new homeowner, these expenses could lead to a very lean Christmas.

Let’s not forget the added expenses associated with the wonderful winter season, either.  Notable seasonal expenses include:

• Increased heating costs - Many people can go the majority of the spring and summer without the heat turned on.  Come late September, suddenly the furnace is back on and with it comes a nice heating bill.

• Increased gas expenses - While subtle, your vehicle(s) do use more gas in the winter than they do in the summer.  These are many reasons for this, but it comes down to the amount of effort needed from your vehicle in order to get it to move the a distance.  In the summer, where traction is easy to find, it doesn’t take much at all.  However, all the slipping and sliding in the winter makes life particularly difficult for your car.  For some, their gas costs nearly double.

• Seasonal maintenance -  Drafty windows are a sure-fire way to increase your heating costs and lower your homes temperature in one foul swoop.  Just like the seals around windows need to be replaced every now and again, there are numerous seasonal items that require maintenance every winter.

This Christmas season, don’t get caught with your pants down.  Take the time to properly budget your Christmas season, as well as the time that follows it, so that there aren’t any nasty financial surprises waiting for you come spring.

About the Purcell Mortgage Team:
Todd Purcell and JoAnne Purcell are the certified mortgage specialists in Calgary that make up the Purcell Mortgage Team.  Todd and JoAnne strive to maintain an exceptional level of service to all of their current and prospective clients.  Do you live in Alberta and are in need of reputable and ethical mortgage assistance?  Contact the Purcell Mortgage Team today!

What’s fact and what’s fiction?

Although the myth that you must have more than 20 percent down is not exactly true, it does shed light on the changes that the mortgage industry has made since the decline of the credit sector and subsequently of the housing market.

The fact of the matter is that lenders are pickier than ever regarding to whom they will extend a mortgage. With a record number of homes going into foreclosure, and literally millions of Americans behind on their mortgage payments, lenders must do what they can to ensure that an individual will be able to repay a mortgage loan; and a down payment is often a good indicator of that.

The amount that you will need to come to the table with in order to secure a mortgage will depend on the lender. Most homebuyers today are required to put at least five percent down, while others may need to put as much as 20 percent down to secure a home loan.

Very expensive homes or homes bought in areas that are burdened by an overabundance of foreclosures may even require more than 20 percent down.

Q: Can I still get a home loan with no money down?

A: Given today’s economy and lending market, do not expect to snag a home loan with no money down. The only exception currently offered is the cash back mortgage (also goes by other names depending on the lender), but in this case the lender still requires the minimum 5% down payment, the difference is that they provide the down payment. Even better is they do not require it to be paid back, they simply provide the down payment. But don’t get too excited just yet, they do have very strict guidelines on these offers , so if you have a beacon score less than 680 you probably won’t get approved. Also don’t expect the best rates out there either, you will be looking at bank posted rates, which are typically 1-2% higher than the best rates offered by lenders.

Q: What is the minimum I can pay for a down payment?

A: With regards to conventional loans, for single-family homes, you may be able to secure a mortgage for as little as five percent down. The neighborhood must be flourishing and the property must meet the exacting standards of the lender, but it can be done. However, it is important to point out that you must have a great credit score, adequate income and assets and an acceptable debt-to-income ratio, as well.

Q: Will I need more money down if I buy in an area that is currently dealing with a high foreclosure rate?

A: Probably. Many lenders keep a close eye on areas that they feel are declining, and will often ask for an additional five percent down if you want to purchase a home in one of these areas. In other words, if you are using a lender that typically requires five percent down, they may require 10 percent down if you want to purchase a home in area with a high foreclosure rate.

Q: What about condos?

A: Lenders typically require a larger down payment for a condo, but this is not necessary. As long as you have good credit you can land yourself a condo in downtown Calgary for 5% down, or if you have excellent credit you may be able to qualify for a cash back mortgage as described above. Just keep in mind that to get the best rates in Calgary Mortgages, and the Calgary Condo market you will be  expected to have excellent credit.

Your best course of action is to simply talk to a lender and get a loan pre-approval before you begin looking at homes so that you can become educated regarding the lender’s down payment requirements.

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!

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:

1. 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.
2. 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.
3. 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.
4. 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.
5. 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.
6. 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.
7. 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!

The drop in unemployment was sparked by two consecutive months of job growth, with September bringing 31,000 new jobs.  While the number of part-time positions has increased significantly during the duration of this recession, the 31,000 new jobs created last month were largely full-time positions.

Signs of Economic Improvement – Labour Force

A recession is a complex economic situation that doesn’t simply “fix” itself over night.  However, there are many signs on the labour front that are pointing toward an eventual economic correction.  While it is likely that we will not return to the “golden age” of spending (aka- 2007/2008) for quite some time, we will hit an economically stable point sooner rather than later.

Statistics Canada has published a significant amount of information that pertains to regional economic employment statistics.  As it stands, Britich Columbia, New Brunswick, and Prince Edward Island are the only provinces with notable employment gains in September.  Ontario would have been included in that list were it not for significant losses of part-time positions (despite large full-time position gains).

Notable statistics include:

• Overall, employment has fallen by 2.1% since its October 2008 peak. This results in a rough job-loss of approximately 357,000.

• Construction, manufacturing, and educational services say employment increases in September.

• Canadians have been working more hours since April 2009 by approximately 2.0%.

Compared to the doom and gloom that we have been hearing about for the last 18 months or so, this latest batch of good news is yet another sign that the Canadian economy is well on its way to improvement and stabilization.

How does this affect new home buyers, or people purchasing real estate in general?  Read our article on purchasing a home despite economic doom and gloom.

Source: http://www.statcan.gc.ca/subjects-sujets/labour-travail/lfs-epa/lfs-epa-eng.htm

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!