Beattie Mortgage - Key Mortgage Partners

Beattie Mortgage - Key Mortgage Partners Whether you need a new mortgage, are renewing an existing one, want to consolidate some debt, or jus

As of today the governments changed the stress test for all mortgages (insured & uninsurable) to 5.25% or the contract r...
06/02/2021

As of today the governments changed the stress test for all mortgages (insured & uninsurable) to 5.25% or the contract rate plus 2%, whatever is greater. This is higher than the current 4.79% and, going forward, will no longer be based on bank posted rates.

Overall, purchasing power is only slightly reduced ie. about 4%, nothing like the 22% effect that resulted the first time the stress test was introduced to insured buyers.

In simple terms, it reduces what an individual with $100k in income can qualify for by approximately $23k.

Please don't hesitate to reach out if you have any questions or concerns about these changes.

How do my other debts impact my ability to borrow?Yes all your other debt matters!Often as we work and get further into ...
05/04/2021

How do my other debts impact my ability to borrow?

Yes all your other debt matters!

Often as we work and get further into our careers, we think to ourselves, I deserve this, or I deserve that. While I don’t disagree with that at all, we do deserve to treat ourselves, but I just want you to pause for a moment and make sure that you are comfortable with how that decision impacts your other life goals.

Take the time to work with your financial advisor and mortgage agent to make sure you understand the entire impact of those large dollar transactions on your bigger picture. Are you planning on buying soon? Are you hoping to refinance your home for renovations? If you are then a talk with your mortgage agent will help make sure decisions you make today don’t hold you back from your goals tomorrow.

Credit scores range between 300 points to a perfect score of 900 points. Your score will change over time as your cred...
04/23/2021

Credit scores range between 300 points to a perfect score of 900 points. Your score will change over time as your credit report is updated but your credit history stays on your account for 6-7 years in Ontario.

Lenders use your credit report and score to determine how risky it will be to lend money to you. Your score directly impacts if a lender will consider you and the quality of the interest rate you will be able to get.

1. Payment History – This is your most important factor for your credit score (315 points of 900). Are you good at paying your bills on time? Your score is damaged when you make late payments (the longer the worse it is) or if you have bills go to collections.

2. Credit Utilization – How you are using your available credit? What counts towards your credit score is how much of your available credit you actually use, not your credit limits by themselves. When you use a large percentage of your available credit, lenders see you as a greater risk, even if you pay your balance in full by the due date.

3. Length of your credit history - The longer you have had an account open and used it, the better it is for your score.

4. Number of Inquiries – New Credit – This is a big one I hear all the time, "If you pull my credit will it hurt my score?" I will be adding a complete post just for this in the coming days, but the short form is, yes and no. A mortgage agent can do the shopping around for you. Let us do the work and protect your credit. This is 10% or 90 points of your score.

5. Types of credit - Your score may be lower if you only have one type of credit product, such as a credit card. It is better to have a mix of different types of credit, such as a credit card, auto loan, line of credit or other loan.

The Bank of Canada Provides a great resource:

http://ow.ly/Fv1u50EuDj7

First, what is the stress test? Since 2018 all Canadian buyers that are applying for a mortgage from a federally regulat...
03/18/2021

First, what is the stress test?

Since 2018 all Canadian buyers that are applying for a mortgage from a federally regulated lender are required to undergo the OSFI Mortgage Stress Test as part of qualifying. This includes individuals that are putting down more than 20% on their home. This means that you will have to qualify at an interest rate of 4.79%.

Why do I need to qualify at a rate so much higher than current market rates?

The stress test was designed to help mitigate the growing household debt issue in Canada and prevent borrowers from taking on more debt than they can afford. Your mortgage represents one of your largest outstanding debts, and because of that, changes in its interest rate can have a significant impact on your monthly cash flows (on renewal for fixed rate mortgages, or throughout the term on variable rate mortgages).

What can a mortgage broker do for me?

We can work together to take a detailed look at your finances, determine what you can get approved for, and in situations when a federally regulated lender will not meet your needs, we can discuss what your other options are.

Let’s work together to find the best product for you.

You would never go years without looking at your investments, but that’s exactly what most people do with their mortgage...
03/08/2021

You would never go years without looking at your investments, but that’s exactly what most people do with their mortgages. Your mortgage is often your largest financial liability and it is essential that you review it annually to make sure you are on track to meet your financial goals. Your circumstances or priorities may have changed over the last year, which means your mortgage needs may have also changed. Now could be the perfect time for you:

• With the historically low rates caused by the pandemic, we've done the analysis needed to determine if you can take advantage of those low rates.

• Are you using prepayment options to maximize principal payment reductions?

• Consolidate high interest debt, save on interest and improve cash flow!

• You have access to the lowest-cost funds for renovations, education funding, an investment property, new business or other large looming expense.

03/06/2021

What is the best product for you?

Making a financial plan, and taking the time to revisit that plan, is what makes the difference in long term financial success. Let me, as a mortgage professional, work with you and your advisors to find the debt product that is right for you. Together we can make a difference in reaching your financial goals.

Where do we start?

- Determine if you can take advantage of today’s ultra-low pandemic rates;

- Create a plan to maximize your mortgage principal reduction;

- Consolidate debt for one manageable payment, improved cash flow, and interest savings (if you have enough equity); and,

- Accessed the lowest-cost funds for large looming expenses.
I'll help make sure your mortgage incorporates what may be ahead: it could pay big dividends and is the best way to get you where you’re going in your financial future. Book a consultation today!

Understanding Advertising - It’s frustrating that mortgages are always advertised based on rate, especially since cheape...
03/04/2021

Understanding Advertising -

It’s frustrating that mortgages are always advertised based on rate, especially since cheapest is not always best and, as they say: "the devil is in the details". Once you read the fine print, you may find you don’t qualify for that rate, and often there are restrictions and fees that could cost you in the long run.

Important mortgage privileges – those that can save you money and give you flexibility – don’t fit in a rate ad... but they're key in building you the right mortgage matched to your needs and goals.

We need to look at the mortgage as a product, and together we can find the best product for you. If you don’t have the right fit for you, you could end up with your pants around your ankles.

Uninsurable – If the mortgage cannot be insured, they are referred to as uninsurable. These loans typically have slightl...
03/01/2021

Uninsurable –

If the mortgage cannot be insured, they are referred to as uninsurable. These loans typically have slightly higher interest rates but offer the opportunity to amortize the loan over 30 years.

These represent the following transactions:

o Purchases of $1 million or more.

o Refinances where you pull more money out against your home (increasing the loan size)

o Non-owner-occupied rental properties (*some exceptions may apply)

Insurable Mortgages represent conventional loans when the borrower is buying a home with 20% or more down and the home’s...
02/26/2021

Insurable Mortgages represent conventional loans when the borrower is buying a home with 20% or more down and the home’s value is less than $1 million. These mortgages are still eligible for mortgage insurance but the big difference here is that you, as the borrower, don’t have to pay for it.

High Ratio Loans – When buying a home with less than 20% down and as little as 5%, the borrower (you) must pay to insure...
02/25/2021

High Ratio Loans –

When buying a home with less than 20% down and as little as 5%, the borrower (you) must pay to insure the mortgage. This insurance protects the lender if the borrower stops paying for their loan. These insured mortgages generally have the lowest interest rate because they are the lowest risk and cost to the lender.

Key Points:

• Allows you to buy a home when you don’t have 20% saved as a down payment.

• Can only be used on 25-year amortizations.

• Can not be used homes with a purchase price over $1 million, or refinances.

• The cost of the insurance can be rolled into your mortgage amount and paid off over the life of the loan.

• Minimum down payment = 5% on the first $500k and 10% on every dollar over $500k

Address

40 Queen Street West
Brampton, ON
L6X1A1

Telephone

+19059608813

Website

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