Mortgage Tips For Mortgage Refinancing During Global Recession!

Alternative Sources of Credit

2009-05-23T09:23:00.001-04:00

Are you primary income earner with a credit score of 600 or better, are you new to Canada, or you haven't had time to establish an extensive credit history?

Submit 12 months of Bank Statements with your application and we’ll use these to establish alternative sources of credit. We’ll look at things such as pay cheque deposits, regular monthly bill payments, rent payments, etc.

This works best if you only have one primary bank account.

Fax in 12 months of bank statements with the application and this will help save time!

Go to www.joemalek.com to get started.

Thank you

Joe Malek, Mortgage Agent #M08004649

Alternative Lending Is Alive

2009-05-07T09:10:00.002-04:00

You may have heard a lot recently about scaling back 40 year amortizations and dropping LTV caps.

But what you may not have heard is that 40 year amortization and 100% LTV financing is alive and well in Canada, and we are positioned to help you find the alternative lending solutions you need.

As a recap, here are some of the features and benefits we have available to help you today:

100% Loan to Value Financing - for Beacon scores down to 640
40 year amortizations – for no additional premium
Open Mortgage option – allowing you to pay out with no penalty
Maximum TDSR of 50% - with 680+ Beacon scores
Business For Self program with add backs - up to 100% LTV
Preferential pricing – Larger loan amounts qualify for better rates and improved affordability
Express Close – allows for closing in your home

If you don’t fit the regular bank guidelines then why not try alternative lending products? It’s easy, just visit www.joemalek.com and apply online to get started.

Joe Malek, Mortgage Agent # M08004649

Purchase / Refinance plus Improvements

2009-04-29T09:47:00.002-04:00

Purchase/Refinance plus Improvements transactions allow the purchasers to finance the costs of immediate renovations or improvements through the Mortgage Loan.

Conventional Deals:

Appraisal will be required. The report should show both values- the current value of the property and the value after the renovations are complete
Quotes must be obtained and reviewed outlining the work to be done, the cost of improvements and the expected completion date
Work must normally be completed within 90-120 days
An updated Inspection report is required confirming all work has been completed in a satisfactory manner
An amount equivalent to the cost of improvements must be held back at the time of funding ( Doc Tracking item “ Holdback” under a Funding condition)
The holdback is not released until ALL work is completed and inspection reports/confirmation are received.

CMHC / Genworth Insured Deals:

An Appraisal is not required ( Please note that Genworth may proceed to order their own Appraisal to verify property value)
Quotes must be obtained and reviewed outlining the work to be done, the cost of improvements and the expected completion date
Work must normally be completed within 90-120 days
An amount equivalent to the cost of improvements must be held back at the time of funding
The holdback is not released until ALL work is completed. Documentation required includes a letter from the clients confirming the renovations/improvements have been completed and receipts showing invoices have been paid and/or an Inspection report confirming renovations have been done are acceptable
CMHC will insure these types of Transactions where the Improvement costs are less than or equal to 10% of the As – Improved value of the property (ie. Purchase Price + Cost of Improvements). Any amount above the 10% will be considered under a Progress Advance program.
Genworth will insure deals that don’t exceed 20% of the initial Purchase Price or maximum $40,000.00 as a single advance

Items to Be Obtained

Listing- Property must be an “A” property that requires only cosmetic renovations and not a property that needs to be gutted and totally renovated. (Any properties with require substantial or total renovations should be done under a Progress Advance program
Agreement of Purchase and Sale (indicates original Purchase Price)
Quotes- We’ll review the quotes to ensure that major renovations are not being carried out. Any quote over $20,000.00 will be reviewed very carefully.
Appraisal (conventional deals) confirming the Market Value of the property now and after the renovations are complete

We’ll use our judgment on the amount of confirmation that is required to release funds… if it is only a furnace that is being replaced, an appraisal would be unnecessary and a letter and a receipted invoice would be sufficient.

However, if renovations are substantial and especially in the case of structural renovations, an inspection report would be required to ensure the renovations have been completed in a workmanlike manner and the value as stated is noted in the property.

Please also note that if the work is not done by a contractor, the borrower is still required to submit paid receipts indicating that the supplies have been paid for. The receipts should relate to the items the clients have indicated are to be replaced.

Technically, if the repairs are not complete within the 120 days, the holdback will be applied to the mortgage amount outstanding. However, if there is a reasonable explanation, a request for an extension can be escalated.

Click here to apply online for your home purchase / refinance plus improvements mortgage.

Joe Malek, Mortgage Agent M08004649
www.joemalek.com

First-time Homebuyer Heaven

2009-04-22T14:07:00.002-04:00

There has never been a better market in which to be a first-time home buyer.

The rising tide of foreclosures has pushed down home prices significantly over the past 18 months.

Homes, relative to income, are about at the historic norm, which means they’re more affordable than they’ve been in at least a decade.

Beyond that, if you buy a foreclosed property, you might wind up with spending even less.

Spending less to finance a property means you can buy more for your money or buy less and save more for retirement or other purposes.

With interest rates so low, and the price of homes falling, homeownership becomes affordable to many first-time home buyers.

When it comes to hiring a real estate agent, sales are so slow that even the best agents aren’t that busy.

That means you shouldn’t feel rushed or pushed into making decision.

Your agent should have time to really help you understand what you want to buy, and help you secure an excellent deal on a property.

While the housing crisis continues to play out, some first-time buyers are finding a wide-open road leading to the house of their dreams.

If you want to make sure the house you buy this year is a smart financial move, follow these quick tips:

1) Get pre-approved for your loan before looking for a house. If you get pre-approved, that means the lender has to pull a copy of your credit report, you have to apply for the loan, and the lender has to approve your application.

Once you know what you can spend, find the right neighborhood for the next 7 to 10 years. If you plan to stay in your home for at least 7 to 10 years, you’ll be able to ride out almost any downturn in the market.

That’s important because it’ll cost you around 10 percent of the sales price to sell that home. Over 7 to 10 years, you’ve got a good chance of at least breaking even on the sale, plus you’ll have build up a decent amount of equity by paying down your mortgage each month.

2) Don’t go for flash – buy what you need. You can always add granite countertops to a kitchen. It’s a lot harder to buy the size house you need in your school district of choice.
So, buy something a little faded and dated and upgrade over time as your budget allows.

3) Make sure you have cash in reserve. Houses always need something, so when you’re calculating your budget, make sure you allow some extra cash for upkeep and maintenance.

Visit http://www.joemalek.com to get pre-approved today!

Joe Malek, Mortgage Agent #M08004649

GNW made it even harder to borrow

2009-04-16T08:38:00.007-04:00

Effective April 18, 2009, changes have been made to eligibility requirements for GENWORTH Financial Canada (GNW) insured mortgage applications.

All GNW insured mortgage applications:
New GDSR limit of 35% will now apply for all Beacon Scores (previously 35% for Beacon Scores less than 680 and N/A for Beacon Scores 680 and above)
New TDSR limit of 42% will now apply for all Beacon Scores (previously 42% for Beacon Scores less than 680 and 44% for Beacon Scores 680 and above)

The following Beacon Scores are required for GNW insured refinances:
85.01% - 90% LVR: Minimum Beacon Score of 660 (previously 600)
90.01% - 95% LVR: Minimum Beacon Score of 700 (previously 650)

GNW Mortgage for Self-Employed Program:
Purchases transactions only available up to 90% LVR (previously 95%)
Purchases and refinance transactions from 80.01% to 85% LVR: Minimum Beacon Score of 680 (previously 621)
Purchases transactions from 85.01% to 90% LVR: Minimum Beacon Score of 680 (previously 621)

GNW insured Rental Property Financing Program applications:
Non-owner-occupied rentals are no longer available for GNW insured financing (includes 1-4 unit rental properties and non-personal residential mortgages)

GNW insured high-rise condominium properties (4+ floors) residential mortgage applications, the following Beacon Scores are required:
85.01% - 90% LVR: Minimum Beacon Score of 660 (previously no minimum)
90.01% - 95% LVR: Minimum Beacon Score of 700 (previously no minimum)

The above changes apply only to GNW insured products and not to CMHC Insured products but who knows how long before they start making changes too...

This is yet another reason for you to apply for your mortgage right now… before it’s too late.

Visit my website http://www.joemalek.com/ where you can apply online or by fax but don’t procrastinate – GET STARTED TODAY!

Joe Malek, Mortgage Agent #M08004649

Rates Are Down Again!

2009-04-07T09:03:00.002-04:00

Today’s best rates...

4.90% = 6 month
3.20% = 1 year
3.69% = 2 year
3.64% = 3 year
4.09% = 4 year
3.85% = 5 year
5.30% = 6 year
5.15% = 7 year
5.25% = 10 year
3.30% = Variable

Call me today at 1-888-444-4198 for more information on mortgage rates, or to find out how you can get the financing package that meets your individual needs simply apply online at http://www.joemalek.com/

OAC. Certain conditions may apply. Rates are subject to borrower and property qualification. Posted rate is the rate offered by the majority of Canadian financial institutions. Rates may vary and are subject to change without notice.

Thank you

Joe Malek Mortgage Agent #M08004649

The data deficit in real estate

2009-04-06T21:42:00.002-04:00

From Monday's Globe and Mail
April 6, 2009 at 12:00 AM EDT

Transparency would be an asset of great value to Canada as the country faces perplexing policy issues on home ownership and mortgage lending in the current recession.

As things stand, however, the severity of the problems in question is largely a matter of anecdote and guesswork.

If financial institutions and other housing market participants supplied data to Statistics Canada, these issues could be lucidly discussed and resolved.

Canadians may congratulate themselves on a less troubled real estate market than that in the United States, but how much less troubled is unknown. The world economic crisis was triggered by inflated housing prices in the United States, but Canada and other countries had a housing bubble, too.

The number of subprime Canadian mortgage borrowers, for example, remains a mystery, as is the number of people who have lost their homes by power of sale and foreclosure; in the U.S., the equivalent figure is a matter of clear public record on a continuing basis.

Because of the credit crunch, some significant number of Canadians who are successfully meeting their mortgage payments, though their credit ratings show relatively high risk, are in danger of losing their homes when their mortgages come up for renewal.

The lenders that accepted their mortgage applications in the first place would have to advance new cash, because they sold or “securitized” the original mortgage debts.

Some of these non-bank lenders will now be unable to fund what amounts to a new loan, under present economic conditions.

Moreover, the value of the security – the homes – has fallen.

From $3-billion to $5-billion in mortgages and as many as 25,000 borrowers may be affected, but these are only estimates.

Similarly, the question of whether mortgage-loan insurers should compete on a level playing field with respect to the federal government's complex guarantees in favour of insured mortgage lenders is obscured by the lack of information on its implications.

Currently, the insurance policies issued by Canada Mortgage and Housing Corp., a Crown corporation, are 100-per-cent guaranteed, while the policies of private insurers, now principally Genworth Financial Inc., are 90-per-cent covered.

In July, the federal government wisely cracked down on mortgages with no down payments and long, 40-year amortization periods. But, again, the effects of the risky mortgages previously backed are unknown.

The government is rightly trying to keep credit flowing, in housing as in other sectors. It would greatly help if the size of the problem could be discerned.

Tax Cuts for Homeowners

2009-04-03T10:10:00.000-04:00

The Government of Canada has proposed new tax cuts that may benefit you.

If you are a first-time home buyer, or are thinking about renovating your home or making it more energy-efficient… Canada’s Economic Action Plan has tax cuts for you.

The Home Renovation Tax Credit means savings of up to $1,350 on renovations completed before next February.

The First-Time Home Buyers’ Tax Credit means savings of up to $750 on the closing costs of a first home.

The ecoENERGY Home-Retrofit Grant provides up to $5,000 to make your home more energy-efficient.

For more information please visit www.actionplan.gc.ca or call 1-800-O-Canada.

To apply for your next mortgage please go to my website www.joemalek.com

Thank you

Joe Malek
Mortgage Agent
M08004649

5 year fixed rate at 3.85%

2009-04-01T18:37:00.001-04:00

This is not April Fools joke!

My today’s best rate for 5 year fixed is 3.85%!!!

If you are paying your bills on time and would like to refinance your mortgage then you may be able to take advantage of this excellent 5 year fixed rate which is available on high ratio mortgages to 95% of your appraised home value.

Yes, I said appraised home value…

We are in a declining real estate market where your property is worth less today then it was last month and this is why both GENWORTH and CMHC are having very hard time supporting client estimated property values.

Both of these mortgage insurers are now requesting appraisals on almost every deal.

It really doesn’t matter who the lender is… if you want to refinance then you may have to pay about $250.00 to get your property appraised.

This fee is usually paid directly to the appraiser at the time of their inspection but you can also put it on your plastic for now and then pay it off using cash from the new mortgage proceeds.

Act now, this is a quick close special meaning your mortgage must fund within 30 days from your application.

Just go back to my website http://www.joemalek.com/ where you can apply online over my secure server and I’ll get back to you very fast.

Don’t procrastinate, because next moth your property value could be even lower!

Joe Malek
Mortgage Agent #M08004649

Avoid Scams!

2009-03-31T10:17:00.001-04:00

It came to my attention that some homeowners are being ripped off by hard money lenders operating in greater Toronto area.

You’ll probably find these hard money lenders advertising their “fast money” second mortgages in many newspapers across this country.

They’ll approve your application very quickly and then ask you to send them $500 cash to get the ball rolling.

This is a scam and I want you to stay away from these people.

In Ontario, it is illegal for a mortgage brokers to request up front fees on all mortgages below $300,000.

If your mortgage is below $300,000 then they can’t ask you to send them money to get the ball rolling!

If this happens to you then please report them to FSCO ( www.fsco.ca ) immediately.

This is yet another reason why you should work with only one mortgage broker agent and stay with that broker/agent for life.

Your broker/agent should be knowledgeable and experienced and have at least 10 years experience.

I usually start working with my clients on their first home purchase and then look after their mortgage renewals, debt consolidation mortgage refinancing, home equity loans and/or second mortgages.

Majority of my clients stay with me for life because they know they’ll get a great service from me with the best rates on the market for their situation.

If you have a situation you’d like me to look at then simply visit my website www.joemalek.com where you can apply online on my secure server and I’ll get back to you very quickly.

Thank you

Joe Malek
Mortgage Agent #M0084649

My Best Mortgage Rates

2009-03-23T07:20:00.004-04:00

Are you back from your March break yet?

Check out my best mortgage rates!

This is the perfect time to refinance and consolidate debt or purchase your dream home. I can make sure you get the mortgage that meets YOUR needs.

Today’s best rates...

5.20% = 6 month
3.50% = 1 year
3.99% = 2 year
3.69% = 3 year
4.14% = 4 year
3.85% = 5 year
5.40% = 6 year
5.15% = 7 year
5.80% = 10 year
3.30% = Variable

Simply apply online at http://www.joemalek.com/

OAC. Certain conditions may apply. Rates are subject to borrower and property qualification. Posted rate is the rate offered by the majority of Canadian financial institutions. Rates may vary and are subject to change without notice.

Thank you

Joe Malek
Mortgage Agent #M08004649

Bank of Canada Cuts Again

2009-03-03T09:46:00.001-05:00

The Bank of Canada cut its key interest rate by a half-point on Tuesday to a record low of 0.5 percent, as expected, but it’s really too bad they didn’t act sooner.

All of this rate cutting should’ve been done when Canadian dollar was $1.10 U.S. dollar.

It would’ve saved thousands of Canadian jobs and hundreds of foreclosures which despite what you see on your TV… IS happening here in Canada!

These rate cuts came in too late for thousands of homeowners who were not able to refinance and are now facing foreclosures, collection calls and judgments.

Don’t let this happen to you…

Go to my website www.joemalek.com where you can apply online… you just may qualify to reduce your monthly payments by 50% or more and save your home from foreclosure.

Joe Malek
Mortgage Agent #M08004649

Mortgage Rates Are Heading Down!

2009-03-01T09:25:00.003-05:00

I expect the mortgage rates will go down in March making this the perfect time to refinance and consolidate debt or purchase your dream home.

I can make sure you get the mortgage that meets YOUR needs. Call me today and SAVE your money!

Today’s best rates...

5.20% = 6 month
3.50% = 1 year
4.75% = 2 year
4.19% = 3 year
4.39% = 4 year
4.34% = 5 year
5.40% = 6 year
6.00% = 7 year
6.35% = 10 year
3.80% = Variable

Call me today for more information on mortgage rates, or to find out how you can get the financing package that meets your individual needs or simply apply online at http://www.joemalek.com/

OAC. Certain conditions may apply. Rates are subject to borrower and property qualification. Posted rate is the rate offered by the majority of Canadian financial institutions. Rates may vary and are subject to change without notice.

Thank you

Joe Malek Mortgage Agent #M08004649

Get Expert Advice!

2009-02-21T10:10:00.000-05:00

When it comes to mortgages, rates, and the housing market, I’ll speak to you in plain language. I can explain the various mortgage terms and conditions so you can choose confidently.

There’s absolutely no charge for our services on typical residential mortgage transaction.

How can I afford to do that?

Like many other professional services, such as insurance, mortgage brokers are generally paid a finder’s fee when we introduce trustworthy, dependable customers to a financial institution.

These fees are quite standard and nearly industry-wide so that the focus remains on you, the customer.

My current 5 year fixed rates are as follow...

4.34 for credit score 620+
4.19 for credit score 680+
4.14% for credit score 680+ and loan amount over $500,000

Do not hesite to email or call me if you have any questions or simply go to my site www.joemalek.com where you can apply online to get started.

Joe Malek
Mortgage Agent
M08004649

Things Move Very Quickly!

2009-02-19T15:47:00.002-05:00

My job isn’t done until your closing date goes smoothly. I’ll help ensure your mortgage transaction takes place on time and to your satisfaction.

It all starts with one simple online application form at www.joemalek.com .

Joe Malek
Mortgage Agent
M08004649

Get access to special deals

2009-02-19T08:49:00.001-05:00

Many financial institutions would love to have you as a client, which is why they often offer incentives to attract creditworthy customers.

These can include retail points programs, discounts on appliances, shopping clubs, and more.

I do the match on which offers might be worth your attention when it comes to financing or mortgage insurance – so you get the perks you deserve.

You can apply online at www.joemalek.com in confidence.

Joe Malek
Mortgage Agent
M0804649

Ensure that you’re getting the best rates and terms.

2009-02-17T16:37:00.000-05:00

Even if you’ve already been pre-approved for a mortgage by your bank or another financial institution, you’re not obliged to stop shopping!

Let me investigate to see if there is an alternative to better suit your needs.

Go to my website www.joemalek.com to apply online!

Joe Malek
Mortgage Agent
M08004649

Today’s Best Rates!

2009-02-12T09:56:00.003-05:00

I am pleased to announce rate decreases on 3 and 5 year term products.

Effective immediately, my today's best rates are now as low as 4.04% for 3 year and 4.14% for 5 year mortgages!

These rates are now available for home purchase or mortgage refinancing! Refinance your debt today to lower your monthly budget and make your home ownership more affordable.

Apply online at http://www.joemalek.com/

Thank you

Joe Malek
Mortgage Agent
M08004649

P.S. Rates are subject to borrower and property qualification.

More choice means more competitive rates

2009-02-11T19:26:00.001-05:00

I have access to a network of major lenders in Canada, so your options are extensive.

In addition to traditional lenders, I also know what is begin offered by credit unions, trust companies, and other sources.

And I can help you take care of other requirements before your closing date, such as sourcing mortgage default insurance if your down payment or home equity is less than 20% of the purchase price or home value.

Visit my website www.joemalek.com to learn more today.

Joe Malek
Mortgage Agent
M08004649

Why use a mortgage broker – Reason #3

2009-02-10T16:24:00.001-05:00

Many people are uncertain or uncomfortable negotiating mortgages directly with their bank.

Brokers negotiate mortgages each and every day on behalf of Canadian homebuyers and homeowners.

You can count on my market knowledge to secure competitive rates and terms that benefit you.

Don’t hesitate to visit my website www.joemalek.com and apply online in confidence for your next home purchase, mortgage refinancing or second mortgage loan.

Thank you

Joe Malek
Mortgage Agent
M08004649

Why use a mortgage broker – Reason #2

2009-02-06T17:12:00.001-05:00

Save time with one-time shopping.

It could take weeks for you to organized appointments with competing mortgage lenders – and I know you’d probably rather spend your time house-hunting!

I work directly with dozens of lenders, and can quickly narrow down a list of those that suit you best.

It makes comparison-shopping fast, easy, and convenient.

Visit my website www.joemalek.com where you can apply online in confidence!

Thank you

Joe Malek
Mortgage Agent
M08004649

Why use a mortgage broker – Reason #1

2009-02-05T20:40:00.001-05:00

You’ll get independent advice on your financial options.

As independent mortgage brokers and agents, we are not tied to any one lender or range of products.

Our goal is to help you successfully finance your home and property. We’ll start by getting to know you and your goals.

We’ll make a recommendation, drawing from available mortgage products that match your needs, and we will decide together on what is right for you.

Don’t hesitate to visit my website www.joemalek.com and apply online in confidence to get independent advice on your financial options.

Thank you

Joe Malek
Mortgage Agent
M08004649

Get the mortgage that meets your needs

2009-02-04T08:46:00.000-05:00

I offer unbiased advice, fast, flexible service, competitive rates, and access to many lending sources, I can make sure you get the mortgage that meets YOUR needs. Call me today and SAVE your money!

Today’s best rates

5.20% = 6 month
3.50% = 1 year
4.75% = 2 year
4.19% = 3 year
4.39% = 4 year
4.34% = 5 year
5.40% = 6 year
6.00% = 7 year
6.35% = 10 year
3.80% = Variable

Call me today for more information on mortgage rates, or to find out how you can get the financing package that meets your individual needs or simply apply online at www.joemalek.com

OAC. Certain conditions may apply. Rates are subject to borrower and property qualification. Posted rate is the rate offered by the majority of Canadian financial institutions. Rates may vary and are subject to change without notice.

Thank you

Joe Malek
Mortgage Agent
M08004649

Interest Rate Differential (IRD)

2009-01-31T10:56:00.002-05:00

IRD is basically the loss of interest calculated over the remaining time left on the mortgage.

If you are in your first 3 years of your 5 year term and would like to refinance your mortgage to benefit from today’s low rates then you may have to pay IRD penalty which is the difference between the posted rate when you obtained your mortgage and today’s posted rate.

Here is how First Line Mortgages calculate IRD:

If your rate is 6.5% but had a discount of 0.50% therefore rate for calculation penalty would be 7%.

Let’s assume you have 4 years left in term and current posted rate for 4yrs is 5%.

Take 7 – 5 = 2% rate differential.

Take outstanding balance of say $100,000 x 0.02 (difference in rate in decimal point) = $2000 (annual interest cost)

$2000/12 = $166.67 (estimated monthly interest)

$166.67 x 48 = $8000.16 is estimated IRD cost using estimated monthly interest multiplied by 48 month left remaining in term.

THINK AHEAD!

If you have say 3 years 7 months left on your term, you would be using 4 year posted rate. But in 2 months, you will have less than 3 years and 5 months left which means the 3 year posted rate will be used.

If 3 year posted rate is less than 4 year posted rate the IRD penalty will be less.

The ‘greater of 3 months or IRD’ discharge clause is a standard amongst all the banks. By law, there must be an “escape clause”, which is that after 5 years, the discharge penalty will default to 3 months interest.

For example:

If you are in your second 5 year term of your 25 year mortgage then you have only 3 months interest penalty when refinancing your mortgage.

In either case…

This is the perfect time to refinance and lower your monthly payments!

Click here to get started.

Thank you

Joe Malek
Mortgage Agent
M08004649

This is The Perfect Time To Refinance

2009-01-29T08:52:00.001-05:00

With rates down by as much 1% over the last couple of months THIS IS THE PERFECT TIME TO REFINANCE your higher interest rate mortgages.

If you are currently paying 5.5% or more on your mortgage then I urge you to take 10 minutes of your time right now to complete online application at my website and I will get back to you quickly with couple options SAVING YOU HUNDREDS of dollars monthly and thousands of dollars over the life of your mortgage.

Simply click here to load the refinance application.

Thank you

Joe Malek
Mortgage Agent
M08004649