Patricia Borzellino Mortgage Agent

07/27/2021

House hunting can be fun, exciting, but also stressful. Just when you think you know exactly what kind of house you want, you unexpectedly find that house that will blow you out of the water only to realize that it’s above the budget you had budgeted for. If you’ve decided you want to increase your mortgage amount, it might take a bit of work. Getting a bigger mortgage isn’t as easy as some first-time homebuyers might think. Especially post-Covid, mortgage providers are being more cautious about lending large amounts of money. If you’re trying to buy a home that’s more than your maximum budget, or the amount you’ve been pre-approved for, there are still a few ways you can try to get a larger mortgage. Below are some steps may want to consider taking.

06/30/2021

Mortgage Architects is proud to launch the First Responder Mortgage Program™ on July 1st, 2021. It is a way to say THANK YOU to our First Responders across the country for all that they do for our communities.

Our First Responder Mortgage Program™ was created exclusively for:
• Police Officers
• Paramedics
• Firefighters (employed and volunteer)
• Correctional Services
• Border Services
• Search & Rescue (employed and volunteer)
• Registered Physicians
• Registered Nurses

From purchasing a home or switching from a current mortgage provider, the First Responder Mortgage Program™ is focused on providing the best available mortgage options including:

✓ Competitive rates1
✓ Up to $1,600 cashback on all eligible new purchase transactions - or up to $1,200 when you switch2 your existing mortgage to a new qualified Fixed or Variable rate mortgage 3
✓ Up to $400 for discharge and switch fees4
✓ Additional cash offers available with eligible banking packages4
_______________________________________________________________________
1 Rates are subject to change and are dependent on qualification and credit rating, speak with
your mortgage expert to learn more
2 Switch Promotional Cashback offer cannot be combined with the cashback for purchase
transactions or IFP cashback deal.
3 Customers must attend in branch meeting in order to qualify for the cashback promotion
4 Some conditions apply

If you have questions regarding the program, please feel free to reach out and call me at 647-990-9082.

06/28/2021

Beautiful Luxury Condos available in the Heart of King City!

Experience maintenance-free living in a boutique, mid-rise residence with over 280 contemporary, elevated suites offering the best luxuries of home. 

06/21/2021

There are many things that can go wrong with a home purchase, the low appraisal is the biggest fear. Once the appraiser has viewed and measured the home, compared the home to recent sales in the area, and prepared the report, sometimes the final figure does not meet the purchase price.

In hot markets, it’s common to list a home at a higher price, assuming that competition will drive values up quickly. Some markets rise so fast that appraisal values cannot keep up. When the appraisal comes in low there are a few options that a buyer may have.

1. Make up the difference between the appraisal value and the sales price - A low appraisal does not mean the lender will not lend; it just means that it will only lend based on the ratio agreed upon in the contract at the appraised value.

2. Seller agrees to reduce the sale price - The best solution is often for the seller to reduce the price of the home. In most cases, it makes the buyer happy, and the lender is satisfied. It might also be worth it if the seller needs to close the sale in a buyer's market.

3. Meet in the middle - Sometimes sellers will lower their price down to keep you from paying the entire difference between the sales price and the appraisal. A seller might agree to accept $5,000 in cash and lower the price by $5,000 if the difference is $10,000.

4. Cancel the transaction - Many purchase contracts include loan contingencies, where you can be released from the contract without penalty if you are unable to get financing from your lender.

06/18/2021

If you are looking for a better solution when it comes to separation and/or divorce, contact Jennifer Curry at South Simcoe Mediation!

Mediation is an amicable and efficient way to help you and your partner unravel and resolve the complicated legal, financial, emotional and parenting issues when separating.

Mediation allows couples to separate in a dignified manner and works to preserve an amicable relationship moving forward. It is a proven to reduce the stress associated with a typical lawyer driven divorce, and helps couples achieve the closure that they need in order to move forward.

If you and your partner are determined to work out an agreement without extraordinary legal fees, mediation is a practical and sensible alternative. Mediation is a great way to prevent divorce cases from ending up in court and save couples time, stress and frustration ❤

06/17/2021

GDS and TDS are debt service ratios that are designed to determine whether mortgage payments can be afforded by borrowers. When applying for a mortgage, lenders will only approve borrowers whose GDS does not exceed 39% and whose TDS does not exceed 44% of their total income.

GDS - Gross Debt Service Ratio
GDS is the percentage of a potential borrower's gross income (before taxes) needed to cover housing costs. These costs are principal and interest, property taxes, heating and condominium maintenance fees (if applicable). The main purpose of GDS is to determine if a potential borrower can afford the proposed mortgage payment based on his or her income.

TDS - Total Debt Service Ratio
TDS is designed is to determine the maximum mortgage payment that the borrower can afford. Like GDS, TDS is the percentage of a potential borrower's gross income (before tax) needed to cover housing costs. These costs are principal and interest, property taxes, heating, condominium maintenance fees (if applicable), however it also includes all other debts such as credit cards, child support, alimony and loans.

06/09/2021

Refinancing Tips
1. Decide On A Refinance Goal
Make sure you know what you want to refinance. Some mortgage refinance goals are:
• Debt consolidation. Merge higher interest debts into one manageable payment with a lower interest rate.
• Home renovations. Get the money you need to renovate or make repairs.
• Investing. Take advantage of an investing opportunity or to pay for child’s education.

2. Determine If You Have Enough Equity In Your Home
Your home equity is the difference between your home’s value and how much you currently owe on your mortgage. Lenders will typically order a home appraisal to verify your home’s value.

3. Check Your Credit Score And Your LTV Ratio
The most important factors that will impact your refinance interest rates are your credit score and Loan-To-Value (LTV) ratio. The higher your credit score the better the interest rate. Your LTV ratio is a measure of how much of your home’s value you are borrowing. You can calculate your LTV ratio by dividing your new loan amount by your home’s value.

4. Have Your Paperwork Ready
You will need to gather up some financial documents to get the refinance process going. Have the following paperwork handy:
• Bank statements
• Most recent pay stubs
• Documentation of other income sources such as child support
• A copy of your homeowners insurance policy
• Your current monthly mortgage statement

5. Prepare For A Home Appraisal
Most lenders will require a home appraisal to justify your refinance loan, since your home is the collateral for the new mortgage. An appraisal is an unbiased opinion of your home’s value based on the expertise of a licensed home appraiser.

6. Prepare For Any Fees
Refinancing may include several fees such as Mortgage Prepayment Penalty, Mortgage Discharge Fee, Mortgage Registration Fee and Legal Fees. It is important to consider the costs associated with a refinance to make sure it is the right decision for you.

06/01/2021

As a First Time Home Buyer, buying a home is one of the most rewarding purchases you can make, but it can come with its fair share of unpredictable costs. Before you make a purchase, make sure you know what you are getting yourself into and whether you can afford it. Below is a list of items that you should be considering before purchasing so that you are not be shocked when the bills start arriving.

Closing Costs
As you close on your mortgage, get ready for a list of expenses which include:
• Mortgage Interest
• Land Transfer taxes
• Lender fees
• Legal fees
• Title insurance (the insurance policy for the deed)
• Appraisal
• Home inspection

Home Maintenance
In general, many experts use the 1% rule for maintenance budgeting: The 1% rule of thumb states that you should save 1% of your home’s purchase price for ongoing repair costs.

Property Taxes
Property taxes increase or decrease based on city, ordinances, and even specific neighborhoods. If you own a property in Ontario, you need to pay property tax every year.

Utilities
To get a clear sense of what to budget for utilities, ask a friend with a home in the neighborhood you’re considering to give you a peek at their monthly bills. Make sure to adjust for the size of their home compared to yours.

Homeowners Insurance
If you’re getting a mortgage, you will be required to have homeowners insurance. Homeowners insurance policies generally cover destruction and damage to a residence's interior and exterior, the loss or theft of possessions, and personal liability for harm to others.

05/25/2021

Starting June 1st, insured mortgages will be subject to the stricter stress test. However, it was just announced that uninsured mortgages (a down payment of more than 20%) are also now subject to the new stress test.

Effective June 1, the minimum qualifying rate for an uninsured mortgage will be 5.25 per cent or the mortgage contract rate plus 2 per cent, whichever is greater. Pattie Lovett-Reid explains what this means for homebuyers in her new column on CTVNews.ca.

05/21/2021

The new Stress Test hike is now confirmed. Effective June 1st, 2021 the new qualifying rate for an uninsured mortgage, where borrowers have at least a 20% down payment, will rise to either the mortgage contract rate plus 2% or 5.25%, whichever is higher. Contact me today to see how this new hike will affect you and what you will qualify for after June 1st.

05/21/2021

The new Stress Test hike is now confirmed. Effective June 1st, 2021 the new qualifying rate for an uninsured mortgage, where borrowers have at least a 20% down payment, will rise to either the mortgage contract rate plus 200 basis points or 5.25%, whichever is higher. Contact me today to see how this new hike will affect you and what you will qualify for after June 1st.

The minimum qualifying rate for uninsured mortgages will rise effective June 01