Mortgage Journey With Shawn, 5838 Cambie Street, Vancouver, BC (2026)

10/14/2022

Why is NOW a great time for a Reverse Mortgage?

According to a recent study by Angus Reid, Seven-in-Ten Canadians say money is a source of stress1. You may feel the pressure of the current economic circumstances, such as rising inflation, which makes it more challenging to maintain your standard of living. More Canadians are becoming stressed about their financial situation, from increasing expenses such as out-of-pocket health care and home retrofitting costs to higher grocery and electricity bills.
At times like this, you might be looking for advice and guidance on how you can navigate the uncertain economic climate to maintain your standard of living. The good news is that if you are a Canadian 55+, the CHIP Reverse Mortgage by HomeEquity Bank is a solution for today.

Here are 5 benefits of the CHIP Reverse Mortgage:
A Reverse Mortgage allows you to leverage your most valuable asset- your home. You could access up to 55% of the equity in your home, tax-free, with no required monthly mortgage payments, and no negative impact on your cash flow.

A survey found that 92% of Canadians 45+ are keen on aging in place, but finances are a barrier*. With a Reverse Mortgage, you can stay in the home and community you love. You can release more equity in the future, if you choose not to take the full amount or if the value of your home rises. Additionally, you will still be able to benefit from future home price appreciation.

With a Reverse Mortgage, there is no restriction on how you spend the money you receive. You can use a Reverse Mortgage to relieve financial pressure, increase your cash flow, buy the vacation property you always dreamed of, cover health care expenses, finally renovate or make home improvements, and more!

Because you are tapping into your home equity, the funds are not added to your taxable income, nor do they affect government benefits such as Old Age Security (OAS) and Canada Pension Plan (CPP). Also, unlocking part of your home’s equity allows a larger portion of your registered investments to continue growing on a tax-free basis- potentially providing more assets to leave your heirs.
A critical safeguard in today’s economic climate is HomeEquity

Bank’s No Negative Equity Guarantee, meaning you will never owe more than your home is worth when you decide to move or sell. This feature ensures that if your home depreciates below the mortgage amount owing, HomeEquity Bank will cover the difference**. You can stay in the home you love while you wait for the housing market to recover. As an added protection, HomeEquity Bank’s process includes independent legal advice for your lawyer to review the mortgage contract to ensure you understand all the features of the contract.

Written By DLC Marketing Team

08/25/2022

Construction and Pre-Construction Mortgages.
The building or renovating of your own home is such an exciting time and allows you to create something tailored to you and your family! But when it comes to construction mortgages, there are a few different types of loans: new construction and even pre-construction. Let’s break it down so you can determine the best choices for you.

Construction Mortgage

Construction mortgages service both new builds and large home renovations. The purpose of a construction mortgage is to advance you the full funds for your mortgage in stages as outlined below.

These stages align with the construction process of your home (or through major renovations if you are doing an upgrade) and inspectors are required at each stage to confirm the current construction and allow for the advancement of the next set of funds.

Draw Stage Required Completion Construction Stage % of Total Mortgage Advanced
1st Draw (Optional) 15% complete Excavation and foundation complete. You can also use this first draw to purchase land. 15%
2nd Draw 40% complete Roof is on, the building is weather-protected (i.e. airtight, access secured) 25%
3rd Draw 65% complete Plumbing and wiring is started, plaster/ drywall is complete, furnace installed, exterior wall cladding complete, etc. 25%
4th Draw 85% complete Kitchen cupboards installed, bathroom completed, doors have been hung, etc. 20%
5th Draw 100% complete Ready for occupancy with seasonal and exterior work completed 15%
In addition to the difference in receiving funds from a construction mortgage versus a traditional mortgage, there are a few other key differences:

Home construction loans are short-term agreements generally one-year in length while mortgages have varying terms and range anywhere from 5 to 30 years in length.
Most construction loans will not penalize you for early repayment of the balance, unlike traditional mortgages which can have pre-payment penalties if not part of your agreement.
Monthly payments are interest-only until the end of construction.
Construction loans only charge interest on the amount of the loan used during the construction. The borrower does not have to pay interest on any unused portions. Traditional mortgages require the borrower pays interest on the entire amount of the loan.
Construction loans can provide upfront funds to purchase land for your build, while traditional mortgages typically do not service land-only purchases.
Any remaining costs of construction can be paid down by acquiring a mortgage on the home once it’s completed.
Note: If you are choosing to do a self-build, you will need to prove that you have enough experience to properly handle the construction from start to finish.

Keep in mind that, similar to traditional mortgages, construction loans have varying rates and terms depending on the type of property you’re building, the amount of construction, and the length of the construction.

Pre-Construction Mortgage

Somewhat different from a construction mortgage is a “pre-construction” mortgage. These typically apply to condominiums, townhouses, and other new builds. When it comes to pre-construction condo purchases, mortgage approval is required as this tells the developer that you have the ability to finalize the unit later.

Typically, mortgage pre-approval is required within 30-90 days of purchase but you can get mortgages as early as 2-3 years from when the project is due to be completed. In these cases, you may not necessarily be able to get a rate guarantee due to the timeframe but it is worth asking for a commitment letter if you’re seeking a mortgage closer to the final build.

Similarly, with traditional mortgages, your ability to get approval for a pre-construction mortgage is determined by your credit score, income-to-debt ratio, and your employment history.

Closing happens once the building has been registered and when you receive the title to your unit. However, with a pre-construction mortgage, your payments will start with the builder occupancy fees from the time of occupancy to final closing, which can be a period of 3-6 months depending on the project.

Written By Our DLC Marketing Team!

08/22/2022

4 Methods to Melt Your Financial Stress.
If you lost your job tomorrow, would there be a list in your head right away of things you could do to hang on, or would you just be at a complete loss?

Financial knowledge will allow you to better assess your options and create a plan without getting overwhelmed. However, even with the best-laid plans and all the financial literacy in the world, it’s impossible to completely eliminate financial stress — so how do you cope?

1. Have a clear picture of your financial situation.
Do you know your average monthly spending? Do you know how much you owe, the interest rate on your debts, and how much you pay each month in interest charges? Have you ever tracked and categorized your expenses to identify areas (car? dining out? home improvement?) where you could cut back if required?

Avoiding these questions is understandable because the answers may lead to some hard lifestyle choices but turning a blind eye to your real situation will only lead to never-ending financial stress. You need to clarify your situation, collect and analyze your data, and then start creating a plan of attack.

2. Accept your mistakes.
Move on from any emotional reaction and learn to live with any poor financial decisions from your past. Regret and anger won’t make that beach vacation you took on your credit card disappear! That beach vacation is long gone, just focus on your plan to channel more money towards paying for it!

If you need to pass on a night out with the gang because you want to put that $75 towards your card, then just come out and tell them. More than 50% of Canadians live paycheque-to-paycheque, so you won’t be surprising anybody!

3. Set small, achievable financial goals to bolster confidence and measure progress.
If you have credit card debt, try adding $100 to your monthly minimum credit card payment. If you have no credit card debt, open a TFSA and contribute $100 a month. A hundred bucks might seem like a modest amount, but it is a realistic goal that will get you started and will help a lot more than you think.

Did you know that a $100 monthly deposit into your TFSA ($1200 year) from age 18 to 65 will grow to almost $400K based on historical stock market returns?

Adding $100 monthly to the minimum 3% payment on a $5K credit card debt will cut the time required to pay off the balance from 251 months down to 38 months and save you $4500 in interest charges!

4. Get inspired and stay motivated.
Follow a personal finance YouTuber or blogger that you really connect with, hang a goal chart or progress tracker on the wall, talk with a friend or relative who has the same issues and work together — there are lots of methods and resources available to help you, even with a limited budget. It’s critical to maintain a positive attitude and don’t beat yourself up — there are plenty of others in the same boat!

The ultimate goal is to completely eliminate financial stress by building passive income, so you don’t have to go to work every day to pay the bills. Achieving this goal will take time and there is bound to be some stress along the way. Learn to cope and stay focused on your goals.

For powerful personal finance education and training with immediate results, check out the complimentary live streams each week from Enriched Academy. View the schedule and sign up for upcoming sessions on their events page.

Written By Our DLC Marketing Team!

08/16/2022

5 Reasons You Don’t Qualify for a Mortgage.
When it comes to shopping for a mortgage, it is important to know what you need to qualify – but it is just as important to understand some of the reasons why you DON’T qualify so that you can make some changes and budget accordingly for when the time is right.
If you are in the market for a home, make sure you know the 5 major reasons you may not qualify for a mortgage:

1. Too Much Debt
One of the biggest reasons that individuals fail to qualify for a mortgage is that they are carrying too much debt already. This debt can be in the form of credit cards, lines of credit or other loans. Regardless of where the debt comes from, it all contributes to your Total Debt Servicing ratio (TDS), which is one of the qualifiers for a mortgage loan. The goal is for your monthly debt payments to NOT exceed 40% of your gross monthly income.
PRO TIP: Find ways to lessen your expenses, budget or consolidate debt where possible.

2. Credit History
Another indicator of not qualifying for a mortgage can be your credit history. It is always important to pull your credit score before you start house hunting so that you can understand what your credit rating is to help determine what you qualify for. Your credit score is a direct reflection of your potential risk and, if you have a poor credit history then it makes it harder to secure a mortgage loan.
PRO TIP: To improve your credit score, be sure to avoid late or missed payments, exceeding your credit card limit or applying for multiple new credit cards.

3. Insufficient Assets or Income
With rising housing prices and stagnant income levels, one roadblock to mortgage approval can be lacking sufficient income or assets to put against your loan. For some buyers, the only option is to save up more money for your down payment to reduce the overall mortgage or look at suite income or alternative lenders.

4. Not Enough Down Payment
Another reason you may not qualify for a mortgage could be that you do not have enough of a down payment. In Canada, a 20% down payment is required to avoid mortgage default insurance BUT you can still purchase a home with less than 20%; you simply need to account for the insurance premiums, which are calculated as a percentage of the loan and are based on the size of your down payment.

5. Inadequate Employment History
Lastly, employment history can have a big impact on a mortgage approval. Most lenders prefer a 2-year consistent employment history. If you do not have an adequate employment history, have been at your job for a short time or do not have a record of long-term positions, you might find it harder to get a mortgage loan.
Whether you’re looking to get your first mortgage, are ready to move, or are simply shopping around, understanding what can impact your mortgage application will help ensure you have greater success!

Written By Our DLC Marketing Team!

07/28/2022

Tips to Create a Monthly Budget.
One of the quickest ways to take back control of your finances and understand where your money is going is to create a monthly budget. This will help you get a snapshot of your income compared to your spending, and provides an avenue to review outgoing costs and determine areas for improvement to help you increase your monthly cash flow or just feel less stressed!

Step 1: Calculate Your Income

The very first step to creating any budget is determining your income – knowing exactly how much money you bring in, per month, is important to understand what you have available to spend. Remember to focus on NET INCOME versus gross salary as thinking you take home more than you do can lead to overspending and failed budgets.

Step 2: Track Your Spending

Once you have determined your income, you will want to take a look at your spending. Reviewing and categorizing all your monthly bills can help you break down exactly where your money goes and your priorities to see where changes can be made.

To start, the first list out your fixed expenses – these are things like car payments, loans, rent, or mortgage costs that do not change on a monthly basis.

Next, you will want to take a look at your variable expenses – things like groceries, gas, entertainment, etc. and determine your average spend. This is typically the area where people are able to cut back.

Step 3: Set Realistic Goals

Realistic goals are vital for long-lasting financial health. It is important to determine what you cannot live without and where you can cut costs or scale back on spending.

Ideally, when it comes to your monthly budget, you want to consider the 50/30/20 rule, which applies the following:

50% of your spending is for NEEDS such as rent or mortgage payments, car payments, utilities, and groceries
30% of your income goes to WANTS such as shopping, vacations, streaming services, etc.
20% of your income goes to SAVINGS OR DEBT such as emergency funds, retirement, child’s education, and/or credit card payments
Step 4: Make a Plan

Once you have your goals set, you can now make a plan to tackle your financial position and ensure a healthy cash flow each month.

There are a few different ways you can plan to handle your monthly budget. For some, setting realistic spending limits for each category works well. For others, taking a look at the importance of the items on their expenses list and re-prioritizing can free up funds.

Step 5: Adjust Your Spending

Now that you have determined how much money you bring in per month and what you spend it on, you can take a look at adjusting your spending to ensure you remain on budget. Taking a look at any wants is a great place to cut out frivolous spending beyond a reasonable amount.

This is also a great time to review your fixed expenses. Perhaps you can save money by getting a better interest rate on your mortgage or changing your payment schedule for your loan.

Be sure to connect with a Dominion Lending Centres mortgage expert before making any changes!

Step 6: Stay on Track

Lastly, once you’ve tracked all your spending and income and determined your monthly budget, you will want to stay on track. Tracking your budget on a monthly basis is important to catch any changes in your spending habits. As well, it is a good idea to conduct an annual review and take into account any increase in expenses or wages that may require shifts in your overall plan.

Remember! A healthy, well-thought-out budget is key to financial freedom and comfort.

07/20/2022

Canadian Inflation Rises Further in June.
Canadian Inflation Surged to 8.1% in June

Another bad inflation number was posted today. The rate of consumer inflation continued to rise, reaching 8.1% year over year (y/y) in June, following the 7.7% gain in May. The increase was the largest yearly change since January 1983. The acceleration in June was mainly due to higher prices for gasoline; however, price increases remained broad-based, with seven of eight major components rising by 3% or more.

Excluding gasoline, the CPI rose 6.5% year over year in June, following a 6.3% increase in May (see chart below).

On a monthly basis, the CPI rose 0.7% in June, following a 1.4% increase in May. On a seasonally adjusted monthly basis, the CPI was up 0.6%.

On average, prices rose faster than hourly wages, which increased 5.2% from 12 months to June, based on the Labour Force Survey data.

Gasoline prices are highly visible and have surged a whopping 54.6% y/y. That compares to a 48% increase in May. There might be some reprieve in this component of inflation, as gas prices largely follow crude oil prices, which peaked in early June and have trended downward so far in July. This would be welcome news for the Bank of Canada.

Bottom Line

All central banks worldwide (except Japan) face much more than expected inflation. The rise in the annual pace of inflation past the 8% mark will keep the Bank of Canada on its tightening path, though the numbers show some evidence of softening. For example, food prices appear to be easing, and gasoline price inflation may have peaked. Food prices were up 0.1% in June, the slowest increase in a year. Shelter costs gained 0.4%, the smallest increase since November. Statistics Canada said that reflects lower real estate commissions as the housing market slowed.

With some luck, price pressures might be peaking. The chart below shows the Bank of Canada’s most recent forecast for inflation published last week in the July Monetary Policy Report. The Bank of Canada estimated inflation would average about 8% through the third quarter of 2022 before slowing.

According to the swaps market, traders are betting that the central bank will hike its policy interest rate another 75 basis points on September 7 when it meets again, after the full percentage point increase last week. That would take the overnight rate from 2.5% current to 3.25%–above the Bank’s estimate of the neutral range. It would also push up the prime rate from 4.7% to 5.45%, leading to a 75 bps hike in variable rate mortgages. Last week’s action already took variable mortgage rates to roughly 4.25%, which increased the qualifying rate on such loans to 6.25%–above the 5.25% rate before the move. As a result, the gap between the qualifying rate for fixed-rate mortgage loans and variable-rate loans has fallen to only about 100 bps, its lowest level in years. This undoubtedly continues to slow housing activity, reducing economic growth in Canada.

The question remains–will the Bank of Canada successfully reduce inflation without triggering a recession? Stay tuned.

Written by our DLC Marketing Team!

07/12/2022

What to Look for During a Home Tour.

So! You think you’ve found your dream home, and you can’t wait to check it out in person.
Before you go, here are a few things that are important to look out for during a home tour:

Odor: Unusual smells can indicate problems, especially mold or mildew issues.

Plumbing and Electrical: Check water pressure as well as electrical systems to ensure no eroded or exposed wires, properly functioning HVAC, sealed water heater, etc.

Noise: This is one that homebuyers can often overlook, but it is important to consider the noise within the house as well as how loud the street and neighborhood are before committing to ensure they are suitable for you.

Home Layout: Whether or not the layout and function of the home suit your needs.

Number of Rooms: How many bathrooms and bedrooms does the house have? Is that amount suitable for your needs?

Wall and Flooring Condition: What is the condition of the walls and floors? Defects such as warping, cracks, watermarks, etc., can be indicative of larger issues.

Unpermitted Additions or Updates: On occasion, you might go to view a home that was listed as having 2 bedrooms and 1 bathroom, only to find that it actually has an extra bathroom! As great as this might be for your needs, you’ll want to double-check that the addition was permitted. Unpermitted construction can create major issues when it comes to insurance coverage and potential structural headaches if not done properly.
Remember, things like furniture, decor, wall or floor treatments, and hardware or other fixtures are easily updated and not important when viewing a home as they can be changed if the rest of the home suits your needs!
In addition to these items to keep an eye out for, there are also a few specific questions you should be asking your realtor, including the deadline for offers, the number of offers that have been made, why the sellers are moving, and any concerns they may have, whether or not there is a homeowner association with fees, and how old the home is.
To ensure the smoothest homebuying journey, it is vital to have the right professionals at your side. A Dominion Lending Centres mortgage expert can help walk you through the process and even recommend a realtor in your area to assist with the purchase itself!

Written By Our DLC Marketing Team!

07/06/2022

3 Advantages of a Pre-Approval.
While getting pre-qualified can give you a ballpark estimate of what you can afford, getting pre-approved is where the real magic happens.

Mortgage pre-approval means that a lender has stated (in writing) that you do qualify for a mortgage and what amount, based on submitted documentation of your current income and credit history.

A pre-approval usually specifies a term, interest rate, and mortgage amount and is typically valid for a brief period of time, assuming various conditions are met.

There are three benefits to pre-approval including:

1. It confirms the maximum amount you can afford to spend

Not only does getting pre-approved make the search easier for you, but helps your real estate agent find the best home in your price range. The temptation will always be to start looking at the very top of your budget, but it is important to remember that there will be fees, such as mandatory closing costs, which can range from 1 to 4% of the purchase price. Factoring these into your maximum budget can help you narrow down a home that is entirely affordable and ensure future financial stability and security.

2. It can secure you an interest rate for 90-120 days while you shop for your new home

Getting pre-approved doesn’t commit you to a single lender, but it does guarantee the rate offered to you will be locked in from 90 to 120 days which helps if interest rates rise while you are still shopping. If interest rates actually decrease, you would still be offered the lower rate. Another benefit to pre-approval is that, when it comes time to purchase, pre-approval lets the seller know that securing financing should not be an issue. This is extremely beneficial in competitive markets where lots of offers may be coming in.

3. It lets the seller know that securing financing should not be an issue

Lastly, pre-approval lets the seller know that you are able to make the purchase. This can be very helpful in competitive markets where lots of offers may be coming in, as it helps to inform the seller that you’re a sure thing versus other potential bidders who may not have pre-approval.

Keep in mind, that once you get your pre-approval, you will want to make sure not to jeopardize it. Until your mortgage application and sale are completed, be sure you don’t quit or change jobs, buy a new car or trade up, transfer large sums of money between bank accounts, leave your bills unpaid or open up new credit cards. You do not want your financial or employment details to change at all until you have closed on the new mortgage.

Written By Our DLC Marketing Team!

07/04/2022

Purchase Plus Improvements Mortgage

When it comes to shopping for your perfect home, it can be hard to find the exact one ready to go! If you are looking into a home that requires improvements, there is a mortgage product known as Purchase Plus Improvements (PPI). This type of mortgage is available to assist buyers with making simple upgrades, not conduct a major renovation where structural modifications are made. Simple renovations include paint, flooring, windows, hot-water tank, new furnace, kitchen updates, bathroom updates, new roof, basement finishing, and more.

Depending on whether you have a conventional or high-ratio mortgage, if it is insured or uninsurable, and which insurer you use, the Purchase Plus Improvements (PPI) product can allow you to borrow between 10% and 20% of the initial property value for renovations. Additional insight on how the qualifying structure works can be found in the table below:

Type Requirement
Uninsurable $40,000 or 10% of the “initial” value of the property, whichever is less
CMHC Insurable Can exceed $40,000 but not 10% of the “as improved” value of the property.
Sagen™/Canada Guaranty Insurable Can be 20% of the “initial” value of the property but the improvement amount cannot exceed $40,000
The main difference between a regular mortgage and a purchase plus home improvements program is the need for quotes. As part of the verification process, your mortgage professional and the lender will need to see a quote for the work that is planned for the improvements. The quotes will provide us with the cost and plan details required to secure the final approval.

Working with your realtor, your mortgage professional will help guide you through the final approval process, which works as follows:

Find a home

Apply and get approved for a Purchase Plus Improvements mortgage
Get firm quotes on the improvements
Get an appraisal for the estimated as-is and as-improved value of the property.
This will be ordered by your lender or broker and quotes are typically reviewed by the appraiser.

Note: If you are putting less than 20% down payment on the purchase, often only a final inspection is required to confirm the work on the quotes has, in fact, been done.
Close the purchase

Depending on your down payment, the lender may provide up to:
80% of the as-improved value, less the cost of improvements (if on an uninsured mortgage)
95% of the as-improved value, less the cost of improvements (if on a default-insured mortgage)
Start the improvements

The initial advance of funds will be up to 95% of the approved value of the property minus the improvements. You will usually have to pay a portion of the improvements upfront via savings, credit card, personal line of credit, parental funds, etc.

Notify the lender when the project is complete

At this point, an inspector/appraiser will confirm the work has been completed to the specifications agreed by the lender
Once the lender verifies the inspection report, the balance of funds is advanced.

If you have questions about how a Purchase Plus Improvements Mortgage could work for you or are considering taking this route for your next home, please do not hesitate to reach out to a Dominion Lending Centres mortgage professional for expert advice!

Written By Our DLC Marketing Team!

06/26/2022

5 Tips to Stay Cool & Save This Summer.
Today is the first day of summer – otherwise known as the summer solstice, which is the longest day of the year! To maximize your enjoyment, we have some great tips for staying cool this summer AND saving money while you do:

1. Cook in the Great Outdoors

Summer is all about enjoying the sunshine, spending time with your friends and family, and relaxing in your own personal backyard oasis. We suggest the grill masters take their place for a few months of BBQ-fuelled meals. By avoiding cooking in the house, not only do you reduce the heat from the kitchen, but you are also naturally relaxing in your extended outdoor living space.

2. Take Advantage of Fans

Instead of cranking the A/C (and your electricity bill), consider cooling down with portable fans. Not only are these great options if your home is not equipped with air conditioning, but they can help ease the stress on your unit when used together! Portable fans work by creating a breeze, helping to circulate the air and causing a wind-chill effect that hits your skin and helps keep you cool.

PRO TIP: For an extra blast of coolness, place a bowl of ice in front of the fan to create a refreshing mist of air!

3. Shut Out the Heat

We wait for summer all year but, as nice as it is to have that bright light streaming through, it can also increase the heat in your house and cause extra stress on your A/C unit and fans. On especially hot days, keeping the curtains drawn can help reduce the heat input and allow your home to stay cooler and more comfortable!

4. Maintain Your Air Filters

An often-overlooked aspect of home maintenance is air filters. With summer in full swing, we suggest you check the filters in your home. Dirty or jammed-up filters slow airflow and make the system work harder, thereby reducing airflow and causing the heat to build up in your home. Plus, ignoring the maintenance on these can lead to expensive repairs down the road. Replacing your air filters every three months is ideal to keep dirt and dust out of your system and ensure they are working optimally.

5. Swap to Energy Efficient Lighting

You have probably heard some of the reasons why LED lights have become so popular, but did you know that they also produce 75 percent less heat than incandescent bulbs, and can help keep the room temperature down? This cannot only help keep your home cooler during those toasty summer months, but it can also help reduce monthly bills!

Whether you implement one or all of these handy cool-down tips, we hope you have an amazing summer season filled with backyard memories and enjoy your home to the fullest!

Written By Our DLC Marketing Team!

Mortgage Journey With Shawn

10/14/2022

08/25/2022

08/22/2022

08/16/2022

07/28/2022

07/20/2022

07/12/2022

07/06/2022

07/04/2022

06/26/2022

Address

Website

Alerts

Shortcuts

Share

Category