Bank of Canada reveals latest interest rate decision

Interest Rates - Bank of Canada London Community Mortgage Movement

The Bank of Canada has raised its benchmark interest rate by a quarter of a point. This is the fifth time since last summer that the Bank of Canada has pushed up the cost of borrowing for Canadians.

The central bank’s target for the overnight rate is now set at 1.75 per cent.

The cost of loans linked to the big bank prime rates are headed higher in the wake of the Bank of Canada’s decision to raise its key interest rate target by a quarter of a percentage point. The Canadian banks each raised their prime lending rates to 3.95 per cent from 3.70 per cent, effective Thursday, October 25, 2018.

The increase followed governor Stephen Poloz’s first policy meeting since Canada agreed with the United States and Mexico earlier this month on an updated North American free trade deal. It was the bank’s first rate decision since Canada agreed with the United States and Mexico earlier this month on an updated North American free trade deal.

So far, the Bank of Canada has stated that Canadians have been making spending adjustments in response to earlier rate hikes and stricter mortgage policies — and credit growth continues to moderate. Household vulnerabilities — while still elevated — have edged down as a result.

Consumer spending is expected to continue expanding at a “healthy pace,” thanks in large part to the steady rise of incomes and the strength of consumer confidence. It projects exports to keep growing at a moderate clip, even though they will face limitations from several factors — including transportation capacity constraints, global trade uncertainty and stiff competition, particularly from the U.S.

Known as the target for the overnight rate, the benchmark is what Canada’s big banks charge each other for short-term loans. It filters down to consumers, because it affects the rates the banks offer their customers for things like variable rate mortgages and savings accounts.

The bank says households have already made spending adjustments in response to earlier rate hikes and stricter mortgage policies _ and credit growth continues to moderate.

Things Not To Do Before Closing

Things not to do before closing a sale

You have worked to secure financing for your mortgage, you have a great rate and terms for it. Everything is good, all you must do is wait for advancement of funds.

Sometimes you might suffer a lapse in judgement when it comes to the closing the sale of your home. It is sometimes a stressful time when it comes to these types of events, especially if it is your first time purchasing a home.

A mortgage lender might suggest a simple course of action, however sometimes this is misinterpreted by the buyer. Here is a list of things you should NEVER do in the time between your financing complete date (when everything is setup and looks good) and your closing date (the day the lender advances funds).

Don’t do anything that would reduce your income

When it comes to your employment don’t do anything that would jeopardize your employment or income with your existing employer. Getting a raise is fine but dropping from Full Time to Part Time status is not a good idea. The reduced income will change your debt service ratios on your application and you might not qualify.

Do not close any credit accounts

Even if you realize that you never use a certain credit card, for example, cut it up if you must, but do not cancel that line of credit while you are waiting to close the purchase of your home.

Don’t apply for new credit

if you find yourself at shopping for new furniture and they want you to finance your purchase right now… don’t. By applying for new credit and taking out new credit, you can jeopardize your mortgage. It is best to wait until everything is finalized before going out and buying new furniture for the house.

Do not buy anything with your closing cost. Nothing.

This means not one thing. Yes, you might need a washer and dryer, but wait until you close to order it. Don’t take a salesperson’s word that they’ll just write it up and hold it for you, because somebody will enter it into the store’s computer by mistake. Typically, the lender wants to see you with 1.5% saved up to cover closing costs… this money is used to cover the expense of closing your mortgage.

My Mortgage Application Was Denied, Now What?

Mortgage Application was denied, now what?

Owning your home is not only a dream but a financial goal for many in Canada. However, factors like housing prices, interest rates, and new mortgage rules that came into effect have made it a little more difficult to get a home.

If you have recently had your mortgage application denied you may be wondering about some of the next steps you can take. Before you put your dream on hold, here are a few things to consider

Why was your mortgage application denied?

The first thing to consider after your mortgage application was denied, was why it was rejected in the first place. Your credit report or credit history may be one of the reasons. A low credit score can sometimes act as a warning sign to your lender. It would be a good idea to check your credit report to see whether it is accurate and then get to work on improving that credit score.

Proof of income might be another reason why you may not get that mortgage. For those that are self-employed or business owners, it may be a little more difficult to get approved for a mortgage, as lenders most often associate them with unpredictable income and are a higher risk.

The amount of debt you have can also affect your ability to get approved. Lenders will look at something called your debt service ratio when considering your mortgage application. Your Total Debt Service Ratio (TDS) is calculated by adding your family’s monthly mortgage payments, property taxes, and other debt payments, then dividing it by your family’s gross monthly income.

Is it really time to buy?

If your mortgage application was denied and you have considered the reasoning behind it, it is probably a good idea to double check to see if it is an appropriate time to buy a home. If right now you find that you have a lot of debt and are having difficulty paying some bills on time, it may be worth it to pay off some of that debt and set up a budget to put towards your home purchase. If you have however gone through your finances and figured that right now is a good time to buy, you can consider other available options.

What other options are available?

It is a big misconception when it comes to big banks and mortgage loans. There are other lenders available. Not only are there other lenders out there, some of them include: mortgage companies, insurance companies, trust companies, loan companies and credit unions.

Mortgage Brokers can help

If your application was denied, an experienced mortgage broker can work with you to help determine if it is indeed a good time for you to buy a home. They can help investigate some of the alternative options available Mortgage brokers negotiate on your behalf and have relationships with various lenders. Meaning a mortgage broker can help get you approved, even if your first application was denied.

What’s The Deal? Winning

Winning Community Mortgage Movement

I’m Andrew Young of Mortgage Wise Financial and Community Mortgage Movement.

What’s the deal with Winning?

I am proud to announce that Mortgage Wise Financial is the recipient of the 2018 Canadian Mortgage Award for Top Brokerage in Canada with fewer than 25 employees!

Don’t believe me? Head over to http://canadianmortgageawards.com/winners-finalists/2018-winners-finalists for a full list of the finalists.

the Canadian Mortgage Awards (CMA) celebrates excellence across the entire spectrum of mortgage brokering in Canada and continues to be the leading independent awards event for the mortgage industry. 21 prestigious industry awards are designed to ensure national recognition for large and small organizations and individual mortgage professionals.

Winning a CMA is a career-defining moment!

I can’t tell you how truly proud I am of my entire team at Mortgage Wise Financial, from the brokers to the agents, to the administrative staff. Everyone is so incredible! I also have to thank the Realtors, the Insurance Agents, the lawyers, everybody that is and has supported us in what we do throughout the years. We really want to thank you and for all being part of something very special!

I would also like to thank the award committee and everyone that voted for us and lastly thank you to whomever nominated us, we really appreciate the opportunity!

I’m Andrew Young and this is awesome award! That’s the deal with winning!

 

 

What’s The Deal? Organ Donations

Organ Donations Community Mortgage Movement

I’m Andrew Young of Mortgage Wise Financial and Community Mortgage Movement.

What’s the deal with Organ Donations?

So, on May 20, 2018 I turned 40, which is kind of a big deal and calls for a celebration. With me turning 40, it also meant that I had to renew my license through Service Ontario. The fee to get my picture taken was $90 alone, that made me angry.

However, on a more serious note, I received an organ donor reminder in the mail. I would like to talk to you today about Organ Donors. I myself am an organ donor and have been ever since I got my driver’s license. If you can, I highly recommend being an organ donor.

I would also like to mention how important this day means to me, as my father passed away 7 years ago today. He donated his retinas to this beautiful little girl. Because my dad was an organ donor, she now can see now. Even after passing, my dad was able to make an impact on someone else’s life. I personally feel like it is so important to be an organ donor!

Here are some facts about organ donations:

Age alone doesn’t disqualify you from being an organ donor! Did you know that you one donor can save the lives of up to 8 people! They can also enhance the life of up 75 people through the gift of tissue.

Your current or past medical history does not prevent you from registering to be a donor. Individuals with serious illnesses can, sometimes, be organ and/or tissue donors. Each potential donor is evaluated on a case-by-case basis.

All major religions support organ and tissue donation, or respect an individual’s choice.

Check out https://www.beadonor.ca/ to learn out how you can be an organ donor today! It only takes 2 minutes!

Self Employed & Looking For A Mortgage?

Self Employed London Ontario

What’s the deal with being self employed?

I’m Andrew Young from Community Mortgage Movement and Mortgage Wise financial here to talk to you about being self employed and getting a mortgage if you are self employed.

So, you’re self employed? Well congratulations! So now you want to purchase a home – so, what do you need when it comes to looking for lenders?

Most lenders generally want to see at least 2 years minimum self employed or sub contracted income. When it comes to income, lenders will use a 2-year average from your line 150 from your T1 Generals or your Notices of Assessments. Don’t worry there are some opportunities when it comes to grossing up your income by a certain percentage or we also can add back some of the expenses to help get you to the mortgage amount you are looking for.

There is also the opportunity to use the Stated Income Mortgage Program. What is the Stated Income Program? Stated Income means exactly that. When a mortgage application is created, for a self-employed or commissioned applicant, and the entire income amount is not verifiable in traditional documents, for example a Notice of Assessment, the applicant may apply under the Stated Income program to allow an income adjustment to help qualify them for a home purchase or re-finance.

So, using the Stated Mortgage Program we take your stated income and inflate it by a reasonable rate to take into consideration, due to your profession (this is to consider your expenses and cash components of your job). All of this is to help make sure we can get you to the mortgage you want to be approved for.

I’m Andrew Young and that’s the deal!

What’s The Deal with Andrew Young?

January Impact Report

So what’s the deal with Andrew Young?

I’m Andrew Young and I would like to tell you a little bit more about myself and my past work experiences.

 

12 years ago, I started my mortgage career with Bank of Montreal as a mortgage specialist and then transitioned over to Scotiabank as a mortgage specialist. Then 7 years ago I joined mortgage wise financial as a mortgage agent, it wasn’t until almost 2 years ago that I became a mortgage broker.

 

As of January 1, 2018, I am happy to announce that I am now a part owner of Mortgage Wise Financial.

Not only have we added some young talent to our company, but we also have a ton of experienced brokers. We can help you out with your purchase, your mortgage refinancing, mortgage renewal, anything mortgage related from A to Z!

 

I would like to thank everyone in the London Ontario community for your continued support!

I would also like to announce that we have not only been nominated but also have won the Top Mortgage Brokerage for under 25 employees across Canada at the Canadian Mortgage Awards.

 

Thank you again for all your support and we can’t wait to see what 2018 and beyond has to offer!

A & B Lenders and Private Mortgages

A & B Lenders

 

Andrew Young from Community Mortgage Movement here. What’s the deal with A & B Lenders and Private Mortgages?

Today we are going to be going over what is an A Lender, B Lender and a Private Mortgage. But first here is a little more info on what mortgage agents and mortgage brokers do. I myself am a mortgage broker and can not only deliver a lot of different options and a lot of choices because we deal with different types of lenders. So, what’s the deal with these lenders?

A Lenders:

Also known as traditional lenders, refer to banks or credit unions that traditionally cater to customers with good credit scores and have a reliable income – These are considered “A” Clientele.

Institutions servicing an “A” clientele include Canada’s major banks — e.g., BMO, CIBC, National Bank of Canada, Scotiabank, RBC, and TD. These banks are subject to federal regulation, which means that you’ll be stress tested when you apply for a mortgage.

 

B Lenders:
These institutions offer a lower barrier of entry to qualifying for their products but can offset that with higher interest rates. In short, they cater to people who may not qualify for say, a mortgage or a credit card at one of Canada’s six big banks, because they lack either a strong credit history, or a guaranteed income (recent immigrants, or the self employed, for instance).

 

Private Lenders:

These are the lenders that can help fill the gaps between the A & B lenders. These lenders are not just for people in a really bad financial situation, it could also be for people who are looking to build something that is a little more unique, as the banks might not understand or the banks don’t have the hunger for.

Community Mortgage Movement Charity Highlight: Growing Chefs

Growing Chefs

Growing Chefs! Ontario is a registered charity based out of London, Ontario. They unite chefs, growers, educators and community members in children’s food education projects.

Growing Chefs! Was founded by Merri Schwartz, a professional pastry chef in September 2006 in Vancouver, British Columbia. She founded Growing Chefs! as a tool to connect those chefs and growers to local communities, using a fun, empowering, educational program to do so. After getting involved with the program, restaurant manager Andrew Fleet began the pilot for the second chapter of Growing Chefs! in London Ontario.

For 10 years Growing Chefs has been working in the London, Ontario community to help get kids excited about cooking, preparing and sharing healthy food together. The charity has been running programs within schools for about 10 years, as well as several community agencies in London.

One of Growing Chefs’ main goals is to help provide an avenue for chefs and growers to get more involved in the community and help with supporting food education. They also look to provide children in the community with the knowledge and confidence to grow, prepare good and healthy cuisine.

One of the programs that they offer is a hot lunch program for several of the schools within the London, Ontario community. Through the use of their commercial kitchen – the Beet Cafe They prepare and deliver over 27,000 lunches hot and healthy lunches each year. They also offer recipes and educational classes for children

They host a variety of Food Education Projects and each month they offer events their own signature meals. These events are open to the public and the menu for these events are carefully crafted, with fresh local ingredients.

Remember that Growing Chefs is a grassroot organization and would not be able to function without the help of the community and volunteers. If you are looking to volunteer your time be sure to head over to their volunteer page and see the available volunteer positions.

7 Tips to Set Up an Office Nook

Home office tips

Have you decided to work at home on occasion, but don’t have a room that can be used as office? There is a solution to this problem, you can transform a quiet corner of your house into an office nook. Here are seven tips to set up an office nook.

 

Determine Your Needs

Before choosing where to install your office, think about how much time you will be spending in your home office, the number of people who will use it and the equipment and accessories you will need. The idea is to create a practical work environment that is pleasant.

 

Choose the Spot

Don’t have a room that you can use as an office? Why not use your bedroom, living room or entranceway? If you have a staircase you can also use this space by arranging your work area underneath it. The kitchen could also be a perfect place for your computer. While you are working you can keep an eye on the stove or cooking pots. What it narrows down to is what spot provides the most functionality and works for you.

 

Create a Zone

With this you want to create a separate work area, you can do this by painting an area, or cover a wall in materials like cork, slate or wood. You can also use a screen or curtain to create a zone. An area rug can also help to visually separate the room and the office.

 

Choose the Desk

Before you choose the desk style, ask yourself if the desk will be an extension of the room. Will it just be used for dealing with household documents or will it be a real workplace? Will you be using a laptop or a desktop? What are your storage limitations?

 

Organize

Do you need to organize your workspace? If the space is limited, consider using a floating desk. You can also install shelves or cabinets on the walls to save space on the floor. The use of drawers, boxes or file cabinets can all also be used to help with storage of documents.

 

Customize

After you have set up your workplace, give your office a little personal touch. If you are thinking about adding colour, go with blue or green, as these colours help with promoting concentration. Try to add a touch of nature by adding one or two plants into your space.

 

Make it Comfortable

Nothing improves efficiency more than a comfortable office space. Good lighting is also essential in your work area, so make use of natural light as much as possible.

 

When it comes to a functional work area, it really isn’t that complicated.