Laurie Furness - Mortgages

09/26/2024

Great day for Canadians🇨🇦

The stress test has been scrapped for all renewals not just hi ratio.

Qualifying at the contract rate will allow you to explore other lender options, not just the one they are currently with! 🏡

09/25/2024

Buying a Home? Meet the Key Players in Your Journey!

1️⃣ Mortgage Professional (Me!)
As a mortgage professional, I’ll help you find the best mortgage product by shopping from a variety of lenders. Not only can I offer various solutions to save you money, but I’ll also make sure you get the best rate and terms. And the best part? My services are typically free as I’m paid directly by the lenders!

2️⃣ Real Estate Agent
Partnering with a real estate agent is key to navigating the housing market—whether you’re buying or selling! A great agent will help you with your wish list, access off-market properties, and understand trends. They’ll save you money and ensure you secure your dream home in a competitive market!

3️⃣ Lawyer/Notary
Once you’ve found your home and secured financing, a lawyer/notary steps in to handle all of the legal paperwork and will also register your mortgage. They’re essential for closing the deal!

4️⃣ Home Inspector
A home inspector ensures there are no hidden surprises after the sale. From checking for mold to inspecting wiring, they’ll help you avoid costly repairs down the road. Ask your mortgage professional or agent for a reliable recommendation!

5️⃣ Insurance Provider
Before closing, you’ll also need home insurance. A good insurance provider will make sure you’re covered with the right plan for your space and all of its contents!

Ready to get started? Let’s chat!

09/18/2024

⁉️Q4:How much do I need for a down payment?

The minimum down payment is 5% if the first $500,000 and 10% over that to a maximum of $999,999 currently. As of December 15, that will increase to $1,500,000. However, aiming for a 20% down payment is ideal to avoid mortgage default insurance.

⁉️Q5: What if I don’t have the full down payment?

Saving for a down payment can be tough. Luckily, there are various programs that allow you to use alternative sources, like a gift from an immediate family member.

📞📧 Reach out to me to discuss your options!

Laurie Furness
[email protected]
RDM Financial Consultants Ltd.
o/a The Mortgage Centre
FSCO Lic. 10716
www.lauriefurness.com

09/16/2024

Best news in a long time for buyers! 🇨🇦🏡

The Government is increasing the limit for hi ratios purchases to $1.5m and extending the amortization to 30 years for all first time buyer insured deals. Definitely a help in our market.

The Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, today announced a suite of reforms to mortgage rules to make mortgages more affordable for Canadians and put homeownership within reach:

09/11/2024

Bank of Canada’s Rate
The Bank of Canada’s overnight rate, or policy rate, is the interest rate at which major financial institutions borrow and lend funds to each other on a short-term basis. It’s the central bank’s primary tool for influencing the overall economy, including inflation, borrowing, and spending. 📈💼

Purpose: The Bank of Canada adjusts this rate to control economic activity.

Prime Rate
The prime rate is the interest rate commercial banks offer, and it’s often used as a benchmark for loans such as variable-rate mortgages, lines of credit, and personal loans. 💳

How It Relates to the Bank of Canada Rate: The prime rate is influenced by the Bank of Canada’s overnight rate. When the central bank raises or lowers its rate, commercial banks typically adjust their prime rates in response. For example, if the Bank of Canada lowers the overnight rate, banks will likely decrease their prime rates, making borrowing more accesible for borrowers. 🏡

Have questions about how rates changes could affect your mortgage? I’m here to help!

09/04/2024

📉Breaking News:
The Bank of Canada has cut its policy rate by another 25 basis points, bringing it down to 4.25%. This marks the third consecutive rate cut, signaling the Bank’s confidence that inflation and the economy have cooled enough to justify lower borrowing costs.

🏠 What does this mean for you?
If you have a variable-rate mortgage or a home equity line of credit (HELOC), expect to see lower rates.

🔮 Looking ahead:
Economists predict the Bank will continue cutting rates, potentially bringing the policy rate down to 3% by mid-2025.

Stay tuned for more updates on how this impacts the mortgage market!

08/30/2024

Happy Labour Day Long Weekend!☀️☀️☀️

I hope everyone enjoys some well deserved quality time with friends and family.

08/29/2024

What is Home Equity ⁉️

Home equity is the percentage of your home that you own outright. Over time, as you pay down your mortgage, the lender interest decreases and the value of your home that you own outright, increases.

How to Use Your Home Equity
Once you’ve built up equity, here are a couple of ways to use it:

Refinancing:

This is a great way to take advantage of the equity in your home for the purposes of home upgrades, renovations, and debt consolidation. You can refinance to access up to 80% of your home’s equity in useable cash. If you choose to refinance, it’s important to note that there may be penalties for paying out your existing mortgage loan prior to renewal. These penalties can be offset by a lower interest rate, and at the same time, you can access extra funds.

HELOC (Home Equity Line of Credit):

Taking out a HELOC allows you to access your equity like any other loan.
During the draw period, your home equity line of credit will behave like a credit card, and you can draw on the equity in your home whenever you see fit. You will be charged interest monthly on the amount owing.

Final Tip:

Always consult with a mortgage professional to explore the best options for you. Contact me to discuss opportunities to make your home’s equity work for you!

08/22/2024

The First Home Savings Account (FHSA) in Canada is a registered savings plan designed to help Canadians save for their first home. 🏡🇨🇦

Introduced in 2023, the FHSA combines the features of a Tax-Free Savings Account (TFSA) and a Registered Retirement Savings Plan (RRSP) to offer tax advantages for homebuyers.

⭐️Key Features of the FHSA:

〰️Eligibility: Canadians aged 18 or older who are first-time homebuyers are eligible to open an FHSA.

〰️Contribution Limits: The annual contribution limit is $8,000, with a lifetime limit of $40,000. Contributions are tax-deductible, similar to an RRSP.

〰️Withdrawals: Qualifying withdrawals used to purchase a first home are tax-free, similar to withdrawals from a TFSA. Any unused funds can be transferred to an RRSP or a Registered Retirement Income Fund (RRIF) on a tax-deferred basis.

〰️Investment Options: Like a TFSA or RRSP, the FHSA allows for a range of investments, including stocks, bonds, mutual funds, and GICs (Guaranteed Investment Certificates).

〰️Time Limit: The FHSA can remain open for 15 years or until the end of the year you turn 71, whichever comes first. If the funds aren’t used for a home purchase within this period, they must be transferred to an RRSP or RRIF or withdrawn (which would be taxable).

The FHSA is a valuable tool for Canadians aiming to save for their first home, offering both immediate tax benefits and the potential for tax-free growth on investments within the account.

If you are interested in setting up an FHSA or learning more, please reach out to me today!

08/16/2024

⁉️Q3: What is the best interest rate I can qualify for?

One of the most frequently asked questions by a borrower is regarding the best interest rates available.

Your interest rate can significantly impact your monthly payments and the total cost of your loan. This is why it is crucial to know how factors like your credit score, income, and down payment can all influence your interest rate.

The riskier you appear as a borrower, the higher your rate will be.

However, it is also important to understand that interest rates are NOT the most important aspect of your mortgage, even though it does still play a significant role.

This is why it is essential to always speak to a mortgage professional to determine all of your options. In some cases you may lose out on pre-payment privileges or porting options if you opt for the lowest rate available.

A mortgage professional should always consider your mortgage as a whole for your current and future needs.

📞📧 Reach out to me to discuss your options!

Laurie Furness
[email protected]
RDM Financial Consultants Ltd.
o/a The Mortgage Centre
FSCO Lic. 10716
www.lauriefurness.com

08/09/2024

Are you looking for your dream home? 🏠

Whether it is a cozy condo, a spacious townhouse, or a private detached home, there are many options to explore.

Below is a break down of what sets some of these different home types apart so you can find the perfect fit!

🏙️Condominium
A condo is a great first home because it typically costs less than a townhouse or a detached home and is easier to maintain, making it a great option for first-time homebuyers or those with a smaller budget. It is also important to consider that condominiums usually come with monthly maintenance fees.

🏘️Townhouse
Townhomes are typically more affordable than detached homes and are also easier to maintain with lower property taxes. Keep in mind, most townhouse complexes will also come with a monthly maintenance fee, unless they are freehold townhouses. In situations where you pay a monthly fee, you usually won’t have to worry about any outdoor maintenance or snow removal.

🏠Detached Home
If it’s privacy you’re seeking as well as a larger yard, less noise and more space then a detached home is your ideal choice. However, due to the popularity of these homes, there is often high demand in them which can drive up selling prices in some locations.

Making your first purchase a modest and affordable starter home, will allow you to put your funds into building equity in that home. Once you’ve paid down a significant portion of that first home’s mortgage, you will then have more money to put towards an upgrade into your dream home!

Ready to find the home that’s just right for you? Reach out to me at anytime to get pre-approved, so you can begin your house hunting journey with ease.

07/31/2024

Exciting news‼️

Starting August 1, 2024, lenders will be offering a 30-year amortization for insured mortgages to first-time homebuyers who are purchasing new build properties.

This change makes monthly mortgage payments more affordable, helping Canadians purchase their first homes and encourages the construction of more newly built homes.