<![CDATA[Giuseppe Strazzeri - Time To Lend - Blog]]>Sat, 27 Feb 2016 06:23:17 -0800Weebly<![CDATA[Pre Approvals]]>Mon, 22 Feb 2016 15:53:50 GMThttp://timetolend.weebly.com/blog/pre-approvalsPicture
Before you start your search for a home, one of the first things you should do is get pre-approved. Why?  Let us show you.
 
As a first-time home buyer, you'll probably need to borrow most of the price of the home. That's why getting pre-approved for a mortgage is a smart thing to do — even before you start your home search.
 
Most people believe that once you’re pre-approved, you’re good to go, this is far from the truth.  A pre-approval simply means that based on your CURRENT income, expenses, down payment and credit you SHOULD be able to get fully approved once you find the right property.
 
Once you find the right home, you'll need to act quickly and
while, it doesn't guarantee your mortgage application will be
accepted. Getting pre-approved is smart for these reasons:

1. You can make a quick, confident offer on your perfect home
2. Get the home you can afford, knowing exactly how much you can borrow and what your mortgage payments will be
3. You can protect yourself from rising interest rates with a fixed interest rate mortgage. The rate's guaranteed for the up to 120-day pre-approval period
4. Set your budget knowing that the term, amortization, and mortgage payments are locked in at the time of approval

The second part of the equation is the property. Keep in mind even though you’ve been pre approved the lender must now approve the property you’ve selected.  Many times the Banks don’t even pull a credit bureau, they base their pre approval on calculators based on information you’ve provided, they have no idea what your credit is or what type of property you’re going to buy.
 
A pre approval is strictly a means for you to confidently go out and source out the best home within your budget.  Lenders must now approve the home you’ve selected as well. 
 
When buying a home always request two clauses to be added to the offer.  One “subject to finance” and two “subject to insurance”.  If the property was built back in the days prior to 1950 it may have old electrical wiring or Knob and Tube wiring consisting of 60 AMP Service…Most insurance companies will only insure 100 AMP service.
 
Buy adding those two clauses in your agreement, you then have a way out and can look for another property with no issue at all. If you don’t have a “subject to financing” or “subject to insurance” clause at all and you’ve already given your deposit to the realtor (because you were under the impression that you were going to be approved), then you’re out of luck and will be stressed out and scrambling to find a lender that will help you out, even though you were technically “pre-approved”.
 
Better yet, contact our office and let’s provide you with a proper pre-approval and have you fully prepared for what most likely will be the largest purchase in your life!
 
Giuseppe Strazzeri
Mortgage Agent
Lic #M08009255
Dominion Lending Centres
Service First Mortgages
905-778-8100

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<![CDATA[Purchase and Refinance plus Improvements]]>Sun, 07 Feb 2016 18:27:21 GMThttp://timetolend.weebly.com/blog/purchase-and-refinance-plus-improvementsSo you’ve been shopping around looking for that gem in the rough and you stumbled on this pretty little neighbourhood having mature trees, schools within walking distance and easy access to a variety of amenities.  But the house needs some TLC.
 
Walking through the home you see the bright pink painted walls, Green carpet and the vast array of energy inefficient items as your wondering if you will be able to pay the astronomical heating bills.
 
What now?  Should you look for something newer? No way my friend, there is a mortgage product made just for this situation and today we are going to take a look.
 
A Purchase-Plus Improvement 
Mortgage takes into account 
the future value of a home with repairs or renovations as completed after the closing and this is how it works.

What’s Next?  Before you rush out with your realtor to find that home that suits your needs, you really need to know a few things.
  1. There is a maximum amount you are allowed. Most lenders will allow you $40,000 or 10% of the home’s value as your renovation budget.
  2. On closing the funds are transferred for the purchase however the renovation amount are held in trust with the lawyer and will not be released until the work is 100% complete.  Once the work is complete an appraiser will be called upon to come out and inspect the work to confirm the renovations have been completed.
  3. You will have to have at least 5% of the improved value to put down. For example, if your new home costs $300,000 and you are going to do $30,000 of improvements, you will need to have $16,500 down ($300,000+ $30,000 = $330,000 x 5% = $16,500) instead of $15,000.
  4. Keep in mind not all improvements will be accepted by the lender.  Most lenders like new kitchens, flooring, bathrooms, siding, windows, furnaces, garages, roofing or other substantial upgrades such as finishing a basement.
  5. Remember you must do the renovations you’ve told the lender you would do.  If you intend on doing some structural changes you will require drawings and permits to comply with building codes and receive permit approvals.
Now that you’ve come this far it’s time for you to talk to your realtor, write up an offer and bargain your way to the best price.   In the meantime, you contact a qualified contractor or other service providers, to get quotes for the work you would like to do.  These quotes are provided to the lender as a part of the financing process.  The lender reviews and provides the thumbs up.
 
 
If you’re looking to upgrade your existing home the refinance plus improvements can work for you.  In this case, the value of the home is determined via an appraisal “as is” and a completed value. The current mortgage is paid out and the balance of the funds are held in trust with the lawyer until the work is complete.  The same restrictions as the Purchase plus Improvements apply.
 
The really nice part of this program is that you are able to borrow the funds to complete your renovations at today’s very low rates and your mortgage payment will increase very little.
 
So there you have it.  A thinking outside the box way to get the funds you need to turn your house into your dream home.
 
We Think Outside The Box
 
Giuseppe Strazzeri
Mortgage Agent
Lic#M08009233
Dominion Lending Centres
Service First Mortgages
www.timetolend.com
905-778-8100
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<![CDATA[Consumer Mortgage Survey by D+H Financial Technologies]]>Tue, 02 Feb 2016 01:12:57 GMThttp://timetolend.weebly.com/blog/consumer-mortgage-survey-by-dh-financial-technologiesIn fall 2015 D+H commissioned a consumer research study, which focused on the usage and attitudes of people who recently went through a mortgage experience within the last 18 months. Today, we are sharing with the broker community content developed from the research findings.

A brief summary includes:
Top Financial goals for a mortgage applicant
Applicants top pain process
Most important factors in choosing a mortgage
Obtaining additional products when financing
How Stressful the mortgage process is

To read the report click here

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<![CDATA[Down Payments, Optics, and US/CDN Interest Rates]]>Thu, 07 Jan 2016 14:32:07 GMThttp://timetolend.weebly.com/blog/down-payments-optics-and-uscdn-interest-ratesPicture
The federal government recently announced changes to minimum down payments on properties priced below one million dollars. Many headlines are oversimplifying and inaccurate. The change is not as simple, nor as painful, as a jump to 10% down on homes over 500K — this is not the correct math at all.It is a sliding-scale increase, meaning that the extra dollars required rise gradually (i.e., a $675,000.00 home now requires a down payment of $42,500.00 or ~6.3% down — NOT 10%). As such, the impact on markets is expected to also be gradual and marginal, save for possibly Calgary where an already cooling market needs anything but further restrictions.
One might ask why further restrictions for prime borrowers are required at all in a nation with historically (and consistently) low arrears rates. Mortgage arrears rates have come down from their ‘high’ of 0.43% in 2009 to a current 0.29%.
The answer is, in a word, Optics. There is an undeniable statistical link between the amount of equity homeowners have in a property and those same homeowners’ likelihood of falling into arrears or foreclosure. More equity = less risk. The optics of this change appear as good governing. This looks like an effort to moderate rapidly rising prices in the two largest markets (Toronto and Vancouver), and increase stability.
This regulatory change also has a net effect similar to a subtle increase in interest rates from the Bank of Canada. More restrictive lending guidelines are far more targeted than the Bank of Canada moving interest rates, which affect the entire economy, not just real estate.
Moving interest rates is simply too big a macro-economic lever to lean on in an effort to slow, or lower, home prices in just two cities of the nation.

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<![CDATA[BC & ONTARIO POISED FOR CANADA’S STRONGEST ECONOMIC GROWTH IN 2016]]>Mon, 14 Dec 2015 20:36:10 GMThttp://timetolend.weebly.com/blog/bc-ontario-poised-for-canadas-strongest-economic-growth-in-2016

​DR. SHERRY COOPERChief Economist, Dominion Lending Centres
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<![CDATA[FINANCE MINISTER REVISES GOVERNMENT’S ECONOMIC OUTLOOK]]>Sun, 22 Nov 2015 19:14:02 GMThttp://timetolend.weebly.com/blog/finance-minister-revises-governments-economic-outlookPicture

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<![CDATA[ARE YOUR CLIENTS REALLY, TRULY PRE-APPROVED FOR A MORTGAGE?]]>Thu, 22 Oct 2015 13:57:29 GMThttp://timetolend.weebly.com/blog/are-your-clients-really-truly-pre-approved-for-a-mortgagePicture

Beware of the term PRE-APPROVAL!
Here are some facts:
  • Pre-approvals mean something different to every mortgage professional and lending institution
  • For mortgage approvals both the applicants AND the property they are buying need to be adjudicated and approved before funds are advanced…detailed borrower information and documents are typically required for a full pre-approval, however property info is seldom available. For this reason a full blown adjudicated pre-approval is very difficult to obtain
  • Many lending institutions will not adjudicate pre-approvals, and many others charge rate premiums to do so
  • Applicants’ assets, liabilities, and income need to be verified in writing before a mortgage can be approved…many mortgage agents don’t even pull credit or verify employment and down payment before issuing a pre-approval
  • For a high ratio mortgage (less than 20% down), both the lending institution AND the default insurer must approve the lender and the property….default insurers will only adjudicate live applications
  • Rate holds and pre-approvals are different everywhere….rate holds seldom include any form of verification or viewed documents
  • In a rising interest rate environment, a previous pre-approval may no longer be acceptable due to excessive debt service ratios based on the current higher rate
  • For very long closings over 90-120 days, assets, liabilities, and income may need to be fully verified again prior to closing
  • Approved mortgage amount is always based on the lesser of the purchase price OR the appraised value…any shortfall from an appraisal needs to be made up by client
We here are Dominion Lending Centres can help sort through this mine field, and provide you with meaningful feedback and information for your mortgage needs.

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<![CDATA[Data Release: The Bank downgrades its outlook for economic growth in Canada, but leaves interest rates unchanged]]>Wed, 21 Oct 2015 16:19:46 GMThttp://timetolend.weebly.com/blog/data-release-the-bank-downgrades-its-outlook-for-economic-growth-in-canada-but-leaves-interest-rates-unchanged

  • The Bank of Canada left its key policy rate unchanged at 0.50% today. The Bank judges the current level of the overnight rate to be appropriate, but maintained a cautious tone in its outlook, acknowledging global risks and citing that the persistently low level of commodity prices has led to a modest downgrade to the bank's growth forecast. 
  • Overall, the Bank's statement acknowledges the disappointment in global growth this year, but points out that in 2016 and 2017 the positive effects of cheaper energy and accommodative financial conditions should become increasingly evident. It characterizes Canada's economy as having rebounded, supported by the stimulative effects of past interest rate cuts and the past depreciation of the loonie. It also expects the U.S. economy to continue to grow at a solid pace 
  • The Bank updated its forecasts in the accompanying Monetary Policy Report (MPR). Economic growth in Canada is expected to be better in Q3 than the Bank had estimated back in July. However, the Bank downgraded its real GDP growth forecasts to 2.0% in 2016 (previously 2.3%) and 2.5% in 2017(previously 2.6%). At the same time, as a result of the continued weakness expected in business investment, the Bank downgraded its estimate of the potential growth rate of Canada's economy. Therefore, the timing on when the Bank expects the economy to return to full capacity is only marginally later than was previously expected, at mid-2017.
  • For what it's worth, the Bank's forecast for core inflation was upgraded slightly over the forecast horizon, but it remains close to the Bank's 2% target. The Bank characterizes inflation as having evolved largely in line with the outlook in the July MPR. The Bank of Canada has recently de-emphasized its traditional core inflation measure, since it is being temporarily boosted by a weaker Canadian dollar. Thus, core inflation is currently out of step with where the Bank views "underlying inflation", or where inflation is running once temporary factors are stripped away. The bank estimates underlying inflation to be between 1.5-1.7%, consistent with recent speeches. 
Key Implications
  • The Bank's decision to leave rates unchanged was widely expected. It maintained a cautious tone, acknowledging that the Canadian economy rebounded smartly from the contraction in the first half of the year, but that it continues to adjust to lower prices for oil and other commodities. The current level of monetary policy stimulus is necessary to facilitate this ongoing adjustment. 
  • The downgrade to the Bank's growth outlook further out in the horizon is in line with more modest global growth and continued weakness in energy prices. This would typically mean the economy returning to full capacity at a later date, but the Bank also downgraded its estimate of Canada's pace of potential growth. As a result, there is little effect on the outlook for inflation. 
  • At the same time, with the Bank now focused on a measure of underlying inflation rather than core, the performance of the economy relative to growth expectations is particularly important. The new forecasts in the MPR set the bar that Canada's economy must attain to see the eventual removal of monetary stimulus. If growth falls short of the mark, it could elicit further rate cuts. 
  • Overall, with the outlook for inflation little changed and the growth much the same as our latest outlook, we expect the bank to remain comfortably on the sidelines until the second half of 2017, when it is expected to embark on a modest pace of interest rate hikes.
Leslie Preston, Economist

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<![CDATA[Data Release: Canadian housing market activity eases into fall]]>Tue, 20 Oct 2015 19:24:45 GMThttp://timetolend.weebly.com/blog/data-release-canadian-housing-market-activity-eases-into-fall

  • Existing home sales fell 2.1% m/m in September and were up just 0.7% from year ago levels. However, sales are still elevated relative to historical norms and it was the second best September on record for homes sales. Listing also fell by 2%, holding the sales-to-listings ratio steady at 56.8% - in balanced territory. 
  • Average existing home price growth cooled to 6.1% year-over-year in September, following 6-months of near-9% growth. However, the average existing home price can be distorted by a shift in the composition of sales  – which appears to have been the case in September. On a quality adjusted basis, home prices were up 6.9% year-over-year, following a 6.4% gain last month. The acceleration in the quality adjusted home price index was broad based across types of homes. Single-family homes continued to lead the charge with a 9.0% year-over-year gain in September. However, apartment prices also started to pick up some steam, rising by 4.2% y/y in September, following a 3.1% gain last month. 
  • The decline in resales was broad based across all markets, with the exception of Montreal (+1.1%) and Halifax (+39%). Calgary (-7.5%), Edmonton (-4.3%), Toronto (-3.5%), Greater Vancouver (-3.8%), posted some of the largest declines in the month.  Regardless, Vancouver and Toronto still remain in seller's territory and prices were up a still hot 13.7% and 10.4% y/y on a quality adjusted basis, respectively. Elsewhere, there was a large divergence in annual price performance, with prices down heavily in Regina (-4.1% y/y), flat in Saskatoon (-0.9%) and Calgary (-0.4% ), but then up 1.6% in Montreal.  
Key Implications
  • Overall, September's housing markets stats are consistent with a continued hot housing market – it just doesn't appear to be getting any hotter. This underscores our view that the highly simulative impact of lower mortgage rates at the start of this year would wear out by September/October. Looking forward, a favourable economic backdrop and balanced market conditions will continue to support a moderate pace of housing activity in most markets across Canada. The exceptions include Calgary, Edmonton, Regina and Saskatoon where sustained low oil prices are likely to lead to weak housing activity through the rest of 2015 and first half of 2016. Existing home sales are already down 34% from year ago levels in Calgary. 
  • Looking forward, average existing home prices are likely to be held back by a shift towards more affordable types of housing (for example, condos) and regions (away from Toronto and Vancouver). Therefore, more emphasis should be placed on the MLS quality adjusted home price index. With some bigger markets remaining relatively tight, we should continue to see more upward pressure on quality adjusted prices through the rest of 2015.   
 
Diana Petramala, Economist
TD Economist



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<![CDATA[World Wide Service]]>Fri, 28 Aug 2015 14:33:02 GMThttp://timetolend.weebly.com/blog/august-28th-2015Do you deal with overseas suppliers or are you looking at dealing with overseas suppliers? If your answer is yes, then we have a product for you.

How can we help you say? We have recently aligned ourselves with a funder that will provide factoring solutions across the globe.

We know provide a complete end to end funding solution to help import finished goods and improve cash flow.  It’s speedy, there’s no lengthy approval and no Banks meaning fast responsive service to help capitalize on opportunities with better buying power. 

Who will this product benefit?

This product/service is suitable for businesses importing finished goods for local resale such as giftware, equipment, machinery, components and parts for resale.

We are delighted to be now offering this unique facility to open more trade possibilities around the globe.

For further details reach out to us at 647-204-6744

Building, Improving and Securing Credit Through Safe, Secure and Affordable Solutions

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