Val Brewer - Mortgage Broker

06/18/2021

Moving on UP!

Life is constantly changing from your career to your family as we climb up the ladder of life. With these life changes, your current home may no longer be working for you. Whether you’re cramped in your tiny apartment or have a little one on the way, it may be time to look at moving on up!

Before considering the move to a larger home, there are some things to consider. For instance, whether or not you can afford to make the move and buy something bigger.

If you are wanting to upsize, and are doing so during your current mortgage cycle, you will be breaking the mortgage. As a result, you will have to go through the entire qualification process again. Keep in mind, there may be penalties depending on the term in your mortgage. Some are portable, which would make the transition smoother, but you would need to check your mortgage agreement.

If you are unable to port your mortgage, you would need to re-qualify for a new mortgage. This would be done at the current rates offered by lenders and would be subject to government changes, including recent “stress test” rules.

If it has been a while since you bought your first home, you may be unfamiliar with the “stress test”. It was introduced in October 2016 for insured mortgages (down payments of less than 20%). Then, as of January 1, 2018 was updated to include all mortgages, regardless of down payment percentage. This test determines whether a homebuyer can afford their principal and interest payments, should interest rates increase. It is based on the 5-year benchmark rate from Bank of Canada or the customer’s mortgage interest rate plus 2% – whichever is higher.

The next thing to consider aside from re-qualifying, are fees and taxes. There may be large Property Transfer Taxes and you would also pay realtor fees on the sale of the home you are leaving behind. These fees are typically between 2-5% percent of the home’s selling price.

Beyond the costs associated with the sale of your current home and purchasing a larger residence, the costs of home ownership rise in proportion to the home you live in. If you are moving up from a condo or apartment to a single-family home, you will save on strata but will become responsible for all of the maintenance of your home. As a rule, it is best to save 1% of your new home’s purchase price, per year, for maintenance. For instance, if you purchase a $600,000 new home then you would want to ensure $6,000 a year in savings.

Making the move to a larger home is both exciting and daunting! However, it is entirely doable with the right preparation! No matter what stage you are at with your home, your DLC Ideal Mortgage professional can help. Not only can they offer expert advice, but guidance as you move on up the property ladder. They also have your best interests at heart and will work to ensure future financial success so you can continue living the life of your dreams!

To learn more contact me today at 709-689-2195 or email me at [email protected].

06/11/2021

5 APPROVAL ROADBLOCKS

When in the process of buying a home, there is nothing worse than having your mortgage broker or lawyer call and say “there is a problem”.

If you have found your dream home and negotiated a fair price, which was accepted, and you have supplied all the documentation to your broker, you probably assume everything is fine. The reality is that your financing approval is based on the information the lender was provided at the time of the application. If there have been any changes to your financial situation, the lender is within their rights to cancel your mortgage approval.

To ensure that you don’t encounter any last-minute issues on your home buying journey, there are five major approval roadblocks to be aware of and avoid for a smooth transaction:

1. Employment
When submitting a request for financing, whether a mortgage or car loan or to handle personal debt, one of the most important aspects the lender looks at is employment. If you were working at Company X for five years at $50,000 a year and – just before your deal is finalized – you change jobs, the lender will now require proof from the new job. This can include proof that probation for this new job is waived, or new job letters and pay stubs at the very least. If you change industries, they will want to see more proof that you are capable of keeping this job. For any employment involving overtime or bonuses, the lender often requests a two-year average, which you would not be able to provide at a new position. Another employment change that could hurt your financing approval would be if you decide to change from an employee to a self-employed contractor.

When it comes to financing, it is best to wait to make any major employment or life changes until after the deal has gone through.

2. Down Payment Source
As mortgage financing is based on the initial information provided, you will most likely need to do a final verification of the down payment source. If it is different than what the lender has approved, it could spell trouble for your financing approval. Even if you said that your down payment was coming from savings and, at the last minute, mom and dad offer you the funds as a gift, it could affect your approval. This is an acceptable source of down payment, but only if the lender knows about it in advance and has included this in their risk assessment, but it can end a deal.

3. Debt
A week or two before your possession date, the lender will obtain a copy of your credit report and look for any changes to your debt load. Since mortgage approval is based on how much you owed on that particular date, it is important not to increase your debt before the deal is finalized. Buying a new car or items for the new home must be postponed until after possession; even if they are “do not pay for 12 months” campaigns because you will need to fulfill those payments, regardless of when they start.

4. Bad Credit
One of the biggest roadblocks to mortgage approvals is credit card payments. When you enter the financing process, it is important that your credit score remains positive. If your credit score falls due to late payments, this can cause major issues with your financing. Even if you have a high-ratio mortgage in place which requires CMHC insurance, a lower credit score could mean a withdrawal of the insurance and removal of any financing approval.

5. Missing Identity Documents
Before a deal is finalized, the lawyer must verify your identity documents and see that they match the mortgage documents. You may not think it needs to be said, but it is important to use your legal name when you apply for a mortgage. Even if you go by your middle name or a nickname, all legal documents should match.

Keep in touch with your Dominion Lending Centres Ideal Mortgage professional right up to possession day. Make this a happy experience rather than a heartbreaking one.

Contact me today at 709-689-2195 or email me at [email protected]. My Webpage: https://valbrewer.ca/

06/04/2021

Congratulations! There is nothing more exciting than moving into a new home. Whether a new building or re-sale property, there are a few things you can do as soon as you take possession in order to make it your own. Invest a weekend or two into warming up a featureless space or refreshing someone else’s old homestead.
Here are 10 things you can do to really own your new space and turn it into home sweet home:
1. Change The Locks: Secure your home by changing the locks as soon as you take possession. Even DIY beginners can change a deadbolt lock. A replacement deadbolt set can be installed in place of the current lock with just a screwdriver— no drilling required. Another option is to rekey the lock. Purchase a rekeying set from the same manufacturer as the existing door lock, and reset it for a new key
2. Consider a Professional Deep Cleaning: Hiring a professional cleaner to deep-clean and detail your home before you move your possessions in can make your new home feel that much more YOU! It will be easier without any furniture to work around, allowing them to access to every nook and cranny. Yes, you’ll have to clean again after moving day, but the heavy lifting will have already been done!
3. Clean Out Your Pipes: Years of dust, pet dander and detritus collect in the hidden workings of any home. One of the most effective ways to refresh a new home is to get right into the guts of it! Have your ducts, furnace and air conditioning unit professionally cleaned and be sure to change the filters as required to maintain that clean, fresh air.
4. Apply a Coat of Paint: Painting provides the most bang for your home-improvement buck! Whether the walls of your home are dingy or you’re simply not feeling the magic of beige, it only takes a few hours to repaint your space with a colour that makes you feel at home.
5. Freshen Up Your Floors: Much like worn-out walls, old floors can really put a damper on that new-home buzz. If your hardwood has seen better days, you can consider hiring professionals to re-do it or tackle the project yourself by renting a floor sander and varnishing over a weekend. For carpet, a deep steam clean can do wonders! For laminate, you can get that extra shine with a special laminate floor cleaner. Although if any of your floor coverings are lifting or have holes in them, you may want to replace it. You can further personalize your new space by adding floor runners or area rugs!
6. Neutralize Odors: Any re-sale home can benefit from a deep-clean refresh to eliminate any lingering odors from previous tenants. While some of the above steps will dramatically reduce any lingering smells, stubborn aromas require spot treatments such as:
- Putting dishes of activated charcoal (also known as activated carbon) in a musty, damp basement. These can be found at aquarium stores.
- Running a dehumidifier during the spring and summer.
- Placing a sock filled with dry coffee grounds or baking soda in closets, refrigerators or freezers to absorb stale odors.
- Pouring white vinegar down a stinky drain.
7. Enjoy the View! Dirty windows and screens can make rooms feel dark and dingy. A thorough cleaning will have your windows shining, and your indoors will feel brighter and fresher too. If your home came with the previous owner’s window coverings, be sure to clean or launder them; it’ll remove allergens as well as reduce any lingering odours. Or consider replacements with colors and patterns more suited to your style!
8. Lighten Up! A well-lit home is immediately warmer and more inviting than its darker counterparts. If your rooms feel dim, replace the existing bulbs with bright, energy-saving LED or CFL bulbs for more light and cost-savings! Dated lighting fixtures can also foil your redecorating efforts, so consider replacing them with something more your style.
9. Time for a Switch: Replacing your switch plates only requires a screwdriver but you would be surprised how much swapping out old lighting switch plates can refresh your space. With a little DIY expertise, screwdrivers, pliers and a voltage tester, you can install energy saving dimmer switches instead.
10. Display Your Art: Once you have deep-cleaned your new home and organized it to your heart’s content, it is time to dress up your walls with your favourite artwork and family photos! Get your kids’ kindergarten masterpieces onto the fridge and deck out your mantel with family photos.
Moving into a new home is one of the best times to make your space perfect for you! With a clean slate and empty floor space, now is the time to include all the things that make your house a home – to you! Unpack your knick-knacks and personal items and add a splash of color with throw pillows or rugs to brighten things up.

Contact me today at 709-689-2195 or email me at [email protected]. Webpage: www.valbrewer.ca

Read the full article: https://www.gettheidealmortgage.com/index.php/blog/post/219/ten-steps-to-home-sweet-home

Expert mortgage advice for purchases, refinancing, renewals, debt consolidation

05/28/2021

What Your Banker Won't Tell You!

Did you know the biggest difference between getting your mortgage from a bank vs a mortgage broker is that the bank only has access to their products, while I, your mortgage broker, have access to over 40 different lending institutions and hundreds of mortgage products to fit your unique needs?

Here are a few things to keep in mind while doing business with your bank – from opening chequing and savings accounts to personal loans and mortgages, I’ve got you covered!

Bank Fees Add Up - One of the biggest money makers for a bank is the fees; this is especially true with overdraft charges. It is important that you are always checking your accounts and loans to ensure that you are aware of all extra fees (and any interest rate changes), as well as staying on top of your bank account balance. Overdraft and banking fees can add up quickly! Fortunately, these fees can often be negotiated and reduced, especially when addressed early.

Penalties Hurt - Banks are a business and the mortgages and loans you sign with them are contracts. If your mortgage is with a traditional bank, they can often come with steep penalties when broken. When signing for a mortgage or loan, be sure to always read the contract thoroughly and make note of any penalties. Generally speaking, big banks typically have higher penalties to break a mortgage than alternative lenders. Most bank loans have terms of five years or more - but a lot can happen in that time! Even if you don’t think so, you just have to take a look at the current situation in the world to realize just how quickly things can change. While your bank may compete on rates, the high break penalty is built in. As your mortgage broker, I would be happy to help you locate the best mortgage contract with minimal penalties.

Your Credit Health - Most of you have received a letter from your bank, at least once, offering you a line of credit; or a letter from your credit card company urging you to increase your credit card limit, or maybe even sign up for their new card. What these letters typically leave out is how this will affect the health of your credit and where you currently stand. You might be paying extremely high-interest rates on all your financial products, not realizing that your credit score (and other credit-related factors) could be earning you a more reasonable rate for your mortgage, credit card or lines of credit! This is where I can help you to review your financial situation and ensure that you get the best mortgage - at the best rate - based on your current credit health.

You Should Shop Around - A bank only has access to their own mortgage rates. While most people will stay with the same bank for years, there can be a cost for that convenience. More often than not, it’s true that individuals who are renewing will be offered a higher rate than a new customer. Shopping around, especially at renewal time, is a great way to ensure that you are getting the best rate available to you. When you are a few months away from renewal, contact me and I would be happy to help you determine if you are getting the best mortgage before you renew.

When dealing with a bank for your mortgage, it can help to get third-party expert advice. I have access to additional mortgage products beyond what your current bank has access to and I have even more options to best suit your needs. Contact me today at 709-689-2195 or email me at [email protected].

05/21/2021

Call Today! Cell: 709-689-2195
Val Brewer, AMP
Mortgage Broker
Email: [email protected]
https://valbrewer.ca/

Serving St. John's
and Surrounding Areas, NL
A1L 0Z3, Canada

05/14/2021

25 Secrets Your Banker Doesn’t Want You to Know.

Twenty-five or thirty years can sound like an impossibly long time to service a loan – and for many of us, it is. If you are looking to pay off your mortgage faster, here are some tried-and-true tactics to get you to financial freedom that much sooner!

1. Make a Double Mortgage Payment
2. Increase Your Payment Frequency
3. Increase Your Payment
4. Lump Sum Payments
5. Renegotiate When Rates Drop
6. Maintain a High Credit Rating
7. Increase Your Mortgage
8. Make an RRSP Contribution
9. Switch to a Variable Rate
10. Take Your Mortgage With You
11. Set Up Automatic Savings
12. Unhook From The Money Drip
13. Don’t Buy on Layaway
14. Downsize Your House
15. Rent Out the Basement
16. Make Your Mortgage Tax-Deductible
17. Prioritize Your Payments
18. Start With the Highest-Interest Rate
19. Leave Tax-Deductible Until Last
20. Focus on Ugly Debt First
21. Pay Off Bad Debt Next
22. Clear Good Debt Last
23. Buy a New Car
24. Use Your Secret Stash
25. Give your Banker More Money

Let’s face it, your financial future will not get any brighter if you continue to run deficits forever. Unlike a bank or big company, you won’t get a bailout! Stop procrastinating and take charge of your own finances with the above tips!

If you are looking for expert advice about your mortgage and how to pay it down faster, Call or email me - Val Brewer at 709-689-2195 or [email protected] to discuss YOUR situation and options.

Read the full article by clicking the following link:

Expert mortgage advice for purchases, refinancing, renewals, debt consolidation

05/07/2021

What's on your bucket list?

Your bucket list includes all the goals you want to achieve, and the life experiences and dreams you want to fulfill. It's often viewed as a “to-do” list for the golden years of retirement, but your bucket list can also include items that you can fulfill now or in the near future. Financial resources are often needed to knock items off your list, which is why your mortgage should always be a top focus. Your mortgage is the cornerstone of a sound financial plan and can help you take control of your financial future so you will be better able to achieve all that is on your list. Check out our blog for some tips to help you do just that! Call or email me - Val Brewer at 709-689-2195 or [email protected].

https://www.gettheidealmortgage.com/index.php/blog/post/215/whats-on-your-bucket-list

When you take responsibility for your life and your finances, you can achieve all that is on your bucket list. Your mortgage is a key component. Call or email me - Val Brewer at 709-689-2195 or [email protected] to help make sure you achieve your financial goals!

Expert mortgage advice for purchases, refinancing, renewals, debt consolidation

04/30/2021

Get Your Spring Mortgage Checkup!

Warmer spring temperatures brings the chance for a fresh start. It’s important to conduct a spring checkup on your mortgage. So often, homeowners lock into a mortgage term and don’t think about reviewing their needs again until close to the renewal date. Considering your options every year will help ensure you’re saving as much money as possible.

There’s no charge or obligation for a mortgage review, so it’s definitely worthwhile to see if any changes in your financial situation or a shift in your goals over the past year or so means you’re no longer in a mortgage that best fits your needs. There are 3 main areas in this review:

Your Spring Mortgage Checkup

1. Debt levels - Look at your unsecured debt such as credit cards, lines of credit and vehicle loans. Why pay more interest when you may be able to hit reset through a mortgage refinance at a much lower interest rate than you’re paying on your debt right now?

2. Current needs - Are you thinking of moving or buying a second property for vacation or rental purposes? Turn this dream into reality by reviewing your current mortgage, finances and home equity.

3. Future plans - Does it make sense to use the equity in your home to pay for such upcoming events as your children’s education, home renovations or a dream vacation? Reviewing your options annually could very easily set you on a more solid financial path for the future, helping optimize both your earnings and savings.

We would be happy to arrange a time to review your mortgage. Reach out to Val Brewer to help you find the best options to suit your needs thanks to our connections with multiple lenders! Why wait? Call or email me - Val Brewer at 709-689-2195 or [email protected]. today.

04/27/2021

Making The Grade: Common Myths About Credit Scores.

How is your credit score calculated? It is a complex answer and, as such, common myths persist. Today, we are going to help you get a better understanding of your credit score and how to make the grade by busting the most common credit score myths!

MYTH #1: Too many credit cards will hurt my credit score
MYTH #2: Avoid Using Credit Cards If You Want to Build Credit
MYTH #3: Paying Monthly Utilities Builds Credit
MYTH #4: I Can’t Do Anything Once a Payment is Late
MYTH #5: Checking My Credit Score Will Decrease It

Credit score plays a vital role when it comes to potential financing for car loans, mortgages, or even personal loans. It is important to recognize good credit habits now and maintain them for a higher credit score today, and better chance of financial approval in the future.

Read the full article using the link below: https://www.gettheidealmortgage.com/index.php/blog/post/213/common-myths-about-credit-scores

Call or email me - Val Brewer at 709-689-2195 or [email protected] today to learn more.

04/16/2021

Planning a move soon? Whether you are moving on up to a larger home, or downsizing to something with less maintenance, a Dominion Lending Centres Ideal Mortgage Professional can help review your current mortgage to make the process as smooth as possible!
Life is constantly changing, from your career to your family, as we climb up the ladder of life. With these life changes, your current home may no longer be working for you.
If you’re feeling cramped in your tiny apartment or have a little one on the way, it may be time to consider moving on up! For those of you who feel that your current home is too big, or requires too much maintenance, then now might be a good time to scale down!
Regardless of the reason you are looking to move from your current digs, there are some things to consider, such as your current mortgage and potential costs of moving.
Regardless of where you are moving on the property ladder – whether up to a full-size family home or down to a more comfortable condo – Call or email me - Val Brewer at 709-689-2195 or [email protected]. I can help you move on up the property ladder and ensure future financial success so you can continue living the life of your dreams!