Kara Herbeson, Mortgage Agent

02/09/2022

Such a nice house!

Intuitive 3D tour. Detailed Floor Plans. Reliable Square Footage. On-screen Measurements. And much more.

12/09/2020

First ever virtual Christmas Party, and first of three this year! RLP Burloak, once again you have out done yourselves. Thank you for including the Tribe Financial team! Happy Holidays and Merry Christmas to all. Despite our realty, it has been an outstanding year in real estate 🏡

11/04/2020

Some terrifying images of society’s behaviours today. It takes Us to change.

06/12/2020

CMHC Is Not Like The Others!
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Effective July 1st, 2020, The Canadian Mortgage and Housing Corporation (CMHC) are implementing changes to their mortgage qualifications. The details of the changes are below and come with a significant punch to borrowers with less than 20% down payment and those purchasing homes for less than 1M.

It is with great relief that our lenders also have access to two other insurers, Genworth and Canada Guaranty, as they are not following in CMHC’s footsteps and will maintain today’s lending guidelines!

CMHC Guidelines: July 1, 2020
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1) Gross-Debt Ratio Measurement will be reduced from 39% to 35%

• GDS guidelines state that no borrower is allowed to spend more than 39% of their gross annual household income, on the annual mortgage payments, property taxes, heat and 50% of applicable condo fees

2) Total-Debt Ratio Measurement will be reduced from 44% to 42%

• TDS guidelines state that no borrower is allowed to spend more than 44% of their gross annual household income, on the annual mortgage payment, property taxes, heat, and all monthly debts; car payments, credit card payments etc.

GDS and TDS will by far have the biggest affect our First Time Home Buyers and Buyers looking to purchase a house under the $1M mark. Their purchasing power will drop by a WHOPPING average of 10%!!!

3) Borrowed funds will not be allowed to purchase homes

• Today, borrowers are able to borrow from a source of credit, to assist them in closing on their house - Credit Card, Line of Credit etc.
• Gifted funds will STILL be accepted
This program wasn't highly utilized and will not pose a significant change for purchasers.

4) Credit Score Qualifications

• The minimum credit score allowed by CMHC will increase from 600 to 680 for at least one borrower

This change is not of great concern because the GTA shows homeowners with an average credit score of 679

04/23/2020

I had the opportunity to speak with Andrew Cosgrove from Right At Home Realty this week. We touched on a few of the mortgage industry’s hot topics such as mortgage deferrals, interest rates, and options and strategies for borrowers in the heart of COVID-19.

It was nice to virtually sit down with Andrew Cosgrove HomesHe is your neighbourhood realtor who continues to successfully adapt to the ever-changing housing market. By bringing technology into the forefront of his business, he effectively helps his clients buy and sell in today’s world.

Kara Herbeson, ,

04/11/2020

The Variable Rate Mortgage

If you are looking to purchase a home soon, or your existing mortgage is up for renewal, I think you may want to consider a variable rate mortgage right now.

Here’s why….

Uncertainty.

Let me explain.

COVID-19 has created uncertainty everywhere....including the banks and financial markets. And as a result, we have seen big swings in mortgage rates, and more challenges when it comes to getting approved for a new mortgage.

So, the same cloudy economic picture that has pushed the prime rate down, has led lenders to do the opposite with fixed rates, with increases across the board. They have become more cautious about lending, and such added higher risk premiums into their fixed rate terms.

Economics 101 would say that to observe fixed rates rising (an action of tightening money), as the government and banks lower prime rates (an action of loosening), is very unusual…but then again, we are living in very unusual times, aren’t we? Many economists think, that as the world gets control over this pandemic and things return to “normal”, we should start to see the risk premium removed from fixed rates. Hence, why it may be a good idea to “park” your mortgage in a variable rate product, and if/when rates lower, convert that variable rate into a fixed rate. I would normally suggest for clients to take a variable and stay in a variable (never lock-in), but the discounts to prime (ex. Prime - .50%) are gone, with some lenders offering as high as Prime + .20%. So, the strategy being suggesting is merely to “park” your mortgage, and “pick” a new fixed-rate later.

And really, this is what I love about variable-rate mortgages…It’s the control you have, and the overall inherent optionality that comes with variable-rate mortgages.

Here is a quick review of variable rate mortgage features and benefits:

1. Option to lock into a fixed-rate at any time - Can convert to fixed-rate without penalty (most lenders will allow you to convert to a 5 yr fixed rate or longer, some allow shorter terms)

2. The law of Averages- this is the concept that over the course of your 5 yr term, the average or “mean” rate with your variable rate mortgage, will be lower than if you took a 5 yr fixed (statistics suggest this will hold true 88% of the time)

3. Penalties - Nobody intends on breaking their mortgage, but if they do….Variable-rate penalties tend to be much lower than fixed…most variable-rate mortgages offered by lenders allow for you to break with a 3-month penalty. Based on a $350,000 mortgage @ 3%, penalty would be $2,625. If that was a fixed-rate mortgage, it could easily be 4 times that amount.
Feel free to call me to discuss, I am here to help!

**Full Disclosure: The preceding comments are simply my opinion, and variable rate mortgages are not for everyone. There is always a risk with any mortgage product you choose. So let’s have a good conversation around your personal financial situation and pick a term/product that is right for you**

03/14/2020

Lender Outlook in the Face of Adversity!

We have been here before! There is documented history of financial crisis' in Canada (and globally), and we are no stranger to the fears and concerns that go along with it…Job security, affordability, erosion of savings etc.

Late yesterday and for the first time since the financial crisis of 2009, the Bank of Canada announced an emergency inter-meeting rate cut of 0.50%, bringing the key lending interest rate to 0.75%. A level, last seen in 2017. Will the Big 6 banks pass along the savings to the consumer? If they do, then the prime rate will drop to 2.95%, immediately dropping interest rates for Variable rate users and Home Equity Line of Credit borrowers. As of last night, one of the banks has strategized and determined it is not in their best interest to do so. We are in an extremely volatile time for mortgage interest rates and will continue to be as we progress day by day through the Covid-19 developments.

Last month the Department of Finance announced they were going to make changes to the stress test, which would have increased a borrower's lending position. However, as of yesterday, they have put this on hold and changes will not take place, as originally planned, on April 6.

When it comes to buying a home, the investment principles have not changed….Stay within your financial means, have a pre-approval completed before you shop, and love the home you buy! The rest will take care of itself.

Kara Herbeson

02/05/2020

At Tribe Financial we believe that people need people, that giving more is always better, that there is strength in numbers and that you belong. 🤝✨💪❤️
I am so excited 😆 to announce that for the month of February is partnering with WE BE US and the 20k Sock Day on February 21st.
For the entire month of February all of our local Tribe Financial offices are asking for your support. Did you know that socks are the item that is most requested by the local shelters and organizations we serve, yet they are donated less frequently than other items? 🧦 🙏

Here is how you can help show that when you belong you can create positive change in the world. 👇👇👇👇
✅buy a package of new socks 🧦
✅visit our head office at 1005 Skyview Drive Suite 104, Burlington Ontario to drop off your donation 🙏
✅ go on Amazon and buy some socks to ship to our head office( address above 👆) 📦
✅ visit our website at https://tribefinancial.com/locations/ and visits any of our local offices to drop off your donation ❤️👏
✅ DM me for more information or to arrange any donations 📲

We are super grateful to be taking part in this awesome initiative to not only collect socks for your community but to raise awareness on homelessness in Canada. Because when we all come together there truly is strength in numbers. 🌎 💪❤️👏
Kara Herbeson
Kara Herbeson, Mortgage Agent

Tribe Financial, 5 locations to serve you. Burlington, ON, Markham, ON, Oakville, ON, Toronto, ON [email protected], CALL 1-855-464-6843.

12/20/2019

Celebrating clients, referral partners and friends with Tribe Financial at the Star Wars opening night!! Thank you for coming out.

05/30/2019

Looking to watch the game tonight? Burlington might just have you covered!

A public space by city hall in Burlington will play host to a viewing party for games 1 and 2 between Toronto and Golden State.

05/29/2019

As suspected, the Bank of Canada has maintained the overnight interest rate of 1.75%. There will be no changes to our variable rate mortgage holders! Business as usual.

The Bank of Canada today maintained its target for the overnight rate at 1 ¾ per cent. The Bank Rate is correspondingly 2 per cent and the deposit rate is 1 ½ per cent.