The Real Cost of NOT Buying That House Today.....

    1. Historically the longer you wait...
                    the higher the price.
    As evidence by the CMHC cost index
    for the past 25 years

 2. There are 2 components in purchasing a home:
        
              (A) Cost of the Property
              (B) Cost of the Money
 
      Both of these are commodities.
      You of course wish to purchase both
      at the best price possible.

  


  If interest rates go back to 5% this is historically still very low in regards to rate.
  Please see the difference between 5% vs 3.29% = 1.71% difference.
 
  On a $400,000 mortgage if you wait to purchase, even if prices to NOT go up,
  the interest difference of 5% VS 3.29% over 25 years is $111,900.00.

  You just paid $112,000.00 more for the same house!


                                   This is not my opinion these are facts.

 

                       Is there really a good reason to wait? 

  Please contact me anytime for further information.


  Yours Truly,

  Ariana Leroux

  arianaleroux@gmail.com
  780.952.4087 mobile

 

                   

The Black and White of Some of the New Mortgage Rules to Qualify....

More and more mortgage lenders are optioning to put in the changes being asked for in regards mortgage qualification rules. Now this is not new news, just that more and more of the lenders are picking up these new ways to qualify your mortgage approval or pre approval. Lots of people are confused over some of these changes, so I am going to try to put it into black and white type. It does however make it more paramount to have a mortgage agent on your side, and not an order taker to make sure you have the best mortgage product and rate that works for your individual or family needs. Someone that knows what is going on in the industry on a regular basis, and knows who does or does not do what. Remember in one of my other posts, when I mentioned, "Jack of all Trades - Master of Nothing"

The things that have changed (and are being put into practice with more and more lenders) are as follows:

1) Unsecured debt is being qualified with a 3% payment based on the balance outstanding. What this means is regardless of if you have a low interest rate credit card or personal line of credit, the payment used to qualify you will be 3% of what you owe. For example: on a $10,000 Personal Line of Credit - maybe your payment with the bank is $150. You will have to qualify on your mortgage application using a $300 payment. 

2) Now the largest change that does affect things is this one. On Unsecured Lines of Credit. Now, some lenders still allow you to use the provable payment amount you have on the outstanding debt. But these lenders are becoming few and far between as more are getting onto this band wagon. What is happening is this. If you have for example a rental property with a $390,000 HELOC balance and a limit of $500,000 and your provable payment is $1250.00 per month. What the lender is requiring now is this, 4.6% of the available limit. So in this same situation, the payment being used on the mortgage application for qualification would be $1916.67 per month payment to qualify.

** you can start to see how this changes the face of how mortgage are being qualified and the purchase prices that can be obtained **

3) No more Cash Back for Down Payment (although there are still cash back options, but you have to prove the min 5% down payment and have A1 Credit to qualify): however keep in mind, that the lenders that are doing this are getting few and far between, and the ones we currently have doing it, require you to meet a tonne of requirements to get the approval.

4) Million and One Dollar purchases, have to have min 20% down to get approved, and most have CMHC or GE backing behind the scenes. Use to be just the sliding scale for a majority of lenders for approval numbers, but the min 20% has changed things. Granted, if you are purchasing a million dollar property you should have some money behind you.. but still, it changes how you move your money around at the end of the day.

5) Stated Income lenders are becoming less and less - and min of 10% down required (5% own funds) and a hefty CMHC premium is added to your mortgage numbers. Going to 4.75% from the usual 2%!

6) Child Tax Benefit is no longer a source of income that can be added (with most lenders)

7) Some lenders are also not allowing Guarantor income on an application unless it is spousal or spousal interest in the property or the guarantor resides in the property

8) Heat Caculation:  it is now done based on $0.75/per sq foot of property. That means if you have a 1500 sq/ft property x $0.75 = $1125/12 months = $94.75 to use in the heat caculation. This does change ratios sometimes; considering we could just use $50-85 prior, unless of course it was Servus Credit Union then we use $200 (which is actually more accurate anyhow)

9) New Builds Property Tax Caculation: the Insurers/Lenders are going to use 1% of the purchase price when Caculating property taxes... this being said I know of one or two lenders currently that are using this model. Unless we can prove what the exact taxes are, the 1% will be used. Of course for existing houses, the property taxes can be proven via mls or solicitor

Now this is not the end of the world, yes it makes it harder to qualify, but in the same breath not really - it lowers what some individuals can qualify for. It means, "Yes" you should be talking to a mortgage agent, whether that be myself or a some other mortgage agent, you need to have someone that is looking out for your best interests and not an order taker. It also means that you need to start looking at your mortgage and your long term goals - which is a good thing, you should be doing that anyhow.  Just because there are now some definite black and white guidelines - it does not mean there are not multiple mortgage products out there for you and your situation.

Give me a call today to talk about your mortgage options. Whether you are just getting into the market as a First Time Home Buyer, or whether you are a seasoned veteran ... these changes do affect you. Get it done right the first time. Make the call.

Shake it Off...

Ok, so yes it is Monday, unfailingly it is the first day of the work week, every week. As a co worker of mine stated, it gets a bad rap being that it is the first day back to work for most of us. Being a mortgage agent however, I work the dreaded 24/7 - so Monday is just another day, except when school is in, I get to look forward to some quiet work time... so Mondays for me are not that bad really. I have learned to "shake it off".. Monday could be the first day closer to Friday, which no matter if you work 24/7 or not, is still the best day... we have been programed to think this. How about this thought; do you think your dog cares what day it is? ... Nope. Live each day to its fullest.. that is what they do. It is a page from my four legged friends book, that I will take advice from today. Hope you do to.

Now onto some interesting news that I know is out there already in regards to rate hikes. Yes they happened, yes they went up,  a lot more than we have seen in the last couple of changes. However contrary to the general consensus, they are not terrible and super high. You can still get a 5 year fixed at 3.29%! or get the cost certainty on a 10 year fixed at 3.99%. The Variable rates are coming back as a strong alternative as well - if you qualify at the 5.14% posted rate. Lenders still have great incentives on the transfer/switch programs, and HELOCS at Prime + 0.5% you can not ask for better. We all knew that rates were going to rise, they always do come July - every time with out fail. If you missed out on the 2.79% boat, I can understand your frustration, however look at it this way - On a $400,000 requested Mortgage Amount that is $1850/month approximate mortgage payment at the old rate....with the new 3.29% the approximate mortgage payment is $1950/month. That is about a $100 difference between rates - now while this is not a small number to scoff at, it breaks down to about $25/week. If you are worried because now you will not be able to "afford" the home or become "house poor" - this is a mortgage amount you should not be looking at in the first place. Think of it. What would you do in 5 years when your term is up; life has usually changed maybe you had a baby and now only have one income coming in, maybe someone has lost a job, maybe you did not get the raise you were banking on, or you just went business for self/contracting, or you just had to spend money on a new furnace, shingles etc - and now at renewal rates are back to the high 4% or even early 5% range (which is where we were before all these super low rates came into play).. that is an increase in your payment of about $300-600 per month - can you afford that? If you are that worried about rates in regards to your final payment for what ever payment frequency you want - then you should be seriously looking at the 10 year rate. If you really like the low rate numbers, maybe now look at the variable rate - you get a low rate in regards to Prime, and it qualifies at the posted rate - which currently at the 5.14% rate, you can be more certain you will be ok come renewal time in regards to payments etc.

So " Shake It Off " - those Monday and rate increase blues. They are both not terrible things and there are indeed options out there and different ways to put together the same puzzle picture. You never know, maybe this Monday will be the best day for you ever - you may talk to an amazing mortgage agent about your mortgage options (wink wink) and have them tailored just for you. Finally having peace of mind in regards to your mortgage future. The glass can always be half full, even if today it is half full of rain. Happy Monday!

Mortgage Puzzles & Looking Ahead....

Hey Everyone, yep me again, your Friendly Neighbourhood Mortgage Broker... and no, I do not wear a red suite and shoot string from the cuffs of my shirts, let along stick to buildings. Although as a side note that would be pretty cool. But before I go off on a tangent, I do want to write a bit about mortgage rates. As you all know rates are on leap frogging upwards daily with the lenders it seems. Every other day I am getting a rate increase email.... I did say it would happen. We are soon I think, going to see all lenders over that 3% marker, heading towards mid threes shortly... which will slow down our summer market. Which for all cases has been insane these last three weeks!

Everyone tends to freak out when this happens, but it happens every year. For myself, with two small kids, I tend to think it follows the school year (although I know it is way more complicated than that, IE Bond Market Cause and Effect etc etc) ... however in Simple terms, I see May till the end of June being busy, but it starts to slow down come the beginning of July but it is still chugging along, come the end of July most things peter off to again be picked up come the end of August/September. School ending and school gearing up again.
                                                     
Using my non-existent crystal ball to look into the future....

Rates I believe, are going to eventually start balancing themselves out, that is, they are going to raise and start to get back to what were our normal rates. I am not saying this will happen tomorrow, but it will happen probably before the end of your current mortgage term... and what are your future plans going to be then? Our 'bubble' of the lower than low rates will not self sustain for ever, they are more of a blip in the bigger picture of economy, rates etc (however amazing the blip is, a blip by definition is "A temporary or insignificant phenomenon, especially a brief departure from the normal"... and in the case of mortgages, which are longer term financial obligations, we need to start thinking into the future. If you are the type of person that wants extended stability, then 10 year rates are currently where it is at, at 3.69% with all the bells and whistles, it is a no brainer. Think on this, most people do not have their mortgage paid off in 5 years... remember I said 'most' as I do have a handful of clients that will do just that, pay off their mortgage in 5 years flat. However back to the point, me like most others, will not accomplish that awesome feat. The 10 year rate allows you cost certainty. You know exactly what your payments will be the whole time, and can really concentrate on hammering it down!

Of course the other way to look, is the great 5 year fixed rates as well & just renew it in the 5 year term. Therefore taking advantage of the super low current rates and take your chances in the future renewal. This allows you to have the lowest possible monthly payment obligation and to hopefully start to utilize all the bells and whistles on your mortgage. Meaning, the 15-20% pre payment options, payment frequency options etc etc... Tip: just changing your mortgage monthly payments to biweekly or accelerated weekly will drastically change your amortization. In a good way! Which means, YOU will be mortgage free sooner!  Variable seems to be off the table for now as the spread between variable and fixed is not that great yet, about 35bps. When the spread is around 100bps then you will see the Variables picking up in popularity again! However for now Variables are only great in the HELOCS, which are still going strong with the Prime +0.50%

We all need to seriously start looking at mortgages, the debt we carry and finding what long term solutions are going to work for either yourself as an individual or for your family as a whole. Mortgage payments, types of mortgages, types of rates, types of pre payment options, owner occupied vs rental, types of properties, down payments etc etc - where you get all these from are going to be important. You should go to the experts that can help explain all the differences as well as help guide you to the right mortgage path for yourself. Mortgages are not just about one thing, rate, but a whole bunch of puzzle pieces that once put together will give you a great picture.......Of course I am always available for a free consultation... look ahead into your eventual "Mortgage Free" Future...the grass is greener there but you have to plan to get there in order to actually cross that finish line.

Think Outside the Box!!! 

Why is your Credit Score Important

Why is your Credit Score Important.

Incurring debt is part of life for most people. Understanding how best to handle credit will help you maintain control of your overall financial situation as your credit affects your ability to borrow money. 

Your credit report is simply a listing of all your mortgage and consumer debt. In Canada mortgage brokers use two credit bureaus, Trans Union and Equifax and they have a credit file on anyone who has ever borrowed money. Every time you borrow money or make a payment on a loan or credit, the lender reports the information about that transaction to these two agencies. In addition to credit information, you will also find liens and judgements on your credit report as well as your address and possibly your work history. The accumulation of all of this information is called your credit report. 

A credit score is a rating used by a lender to help determine whether you qualify for a particular credit card, loan, or service. Credit scores run from 300 on the low end to 900 points based on information on your credit file the credit reporting company analyzes your information using a complex mathematical model to yeild your credit score. CMHC and Genworth have limits of 600 for insured mortgages. If your score is below these numbers you would possibly qualify in the private lending world. 

Most credit scores estimate the risk a company incurs by lending you money or providing you with a service-specifically, the likelihood that you’ll fail to make payments in the next two to three years. The hisgher the score, the less risk you represent. 

One thing that many people do not know is that you have a legal right to obtain a copy of your credit report. As Mortgage Agent, I can assist you in obtaining a copy of your report ( you can do this online) I can go through it with you to verify that all of the information is true and correct. The good news is that your credit report is a working document which means you have the ability, over time, to repair any damaged credit and increase your credit score. The number one way to increase your score is to pay down your cards to 30% of their limits. Revolving credit like credit card seems to have a more significant impact on your score than car loans, lines of credit, and so on. By paying down your cards 30% you are leaving a big gap between what your limit is and what you owe a month-- that is very favourable to increasing your credit score.

Raking up a large amount and then paying it off in monthly installments can hurt your credit score. If there is a balance at the end of the month, this affects your score. Credit formulas don’t take into account the fact that you paid it all off the next month. By being more accountable of your spending on a daily or weekly basis through the use of a budget, you can keep those cards below the magic 30 % mark. 

Make sure everything is up to date. Old bills that have not been paid can come back to haunt you. When making
payments online, do so about a week before the closing date printed on your latest statement to ensure the 

payment is received on time. It can take up to five business days for a payment to be received. 

This won’t raise your reported limit but it will widen the gap bewtee your limit and 

your closing balance which should boost your score. 

Older credit is better credit. If you stop using those older credit cards, the issuers may stop updating your accounts. As such, they will lose their weight in the credit formula and, therefore may not be as valuable-even through you have had the card for a long time. Use these cards periodically and then pay them off.
As a mortgage agent, when you are in the process of buying a home I have to only check your credit once. This allows us to use it for the next 30 to 60 days depending on the lender. If you shop by yourself for mortgages and continually have banks pull your credit this will affect it as the more inquiries the more points it will take away from the score. 

Mortgage brokers are credit professionals, we are trained to read and interpret credit bureaus and how they can affect your ability to get a mortgage. 

Contact me at www.arianaleroux.com today for an analysis of your current situation. 

Wednesday Evening Thoughts

So it is Wednesday evening with grey skies and a down pouring of turrential rain. I am watching my dogs and kids sit by the glass storm doors as they are watching sheets of rain blanket my lawn and flowers. My content relaxation soon morphs to a mad dash, to take the flower hanging baskets down and place them into the Mother Nature provide water.  Coming inside dripping water onto the floor, with now giggling kids, there were somethings that I wanted to again mention. Rates and mortgage products. On the heels of getting another wonderful approval for a great client & am of course continually working on all the others that I have pending/looking/thinking/building/waiting... etc etc...  it has been something I wanted to write about all day but had no "time". Ha, water does good on clearing minds that is for sure... so here goes....

You all have heard me say, "rates are going up", and you can see this when you watch the bond market. When the bond rises - our rates are not far on its heel. This has come to pass with pretty well all lenders raising rates this week. Now it is not a huge raise - but it did go up. As well as in the Mortgage Product market, we lost yet another lender that would do stated income for our business for self clientele. More so now than ever it is important I believe that you have someone working in your corner to make sure you have the knowledge to make the important decisions that a mortgage requires. That you have options and direction. Really someone that can protect you from the turrential down pour of garbage, but still know that you need some light nitrogen rain in which to grow.  (nice visual huh). What I am trying to state, is that you do need a Mortgage Agent on your side. You do not need nor want an order taker or data entry person. You need someone that specializes in what you are wanting to participate in, the Mortgage Market. Some who lives and breathes what they are talking about and have your best interests at heart always. :)
                                                      Mortgages are not all about rate, although it is

important, but they are about so much more than just the percentage you receive. I mean, did you ever think "what if I move?", is the mortgage portable? "what if I want to change my payments?" can you?, "what if I want to pay down my mortgage?" well can you? , "what if I have a plan when I want to be mortgage free...", is someone really helping you get to that goal? ... there are so many questions.  Like did you know you lower your given amortization if you make weekly or biweekly payments vs monthly? Can your current mortgage product do this for you? do you want it to? I mean... mortgages are long term for 99% of our population, we have to think past our noses when we are signing on the dotted line. And in order to do that you have to have information, and options.

We still have stated income business for self lenders, but they are dwindling. As well as we will start to see corrections in the interest rates - especially in the Spring/Summer Market... we always do. So if you have questions... Ask. Come into the rain... get wet.. I have an umbrella... and we will get you into something that you qualify for and will work for you as an individual or family. Its what I do, what I love, give me a call to talk about your mortgage options. Even to get a check up on your current mortgage. There is NO COST! But it may save you in the future... it never hurts to ask questions! :)   

Industry Changes In Effect .....

So there are some industry changes that do effect you. Whether you want to purchase, refinance or transfer, these changes directly affect your qualification for home ownership.

As I mentioned May 1st, 2013 in the blog post "Interesting Updates for Mortgage & Eye Openers to Qualification" there have indeed been changes to how revolving debt is looked at on a mortgage application. I just received an email from First National confirming two changes that are affective immediately with them for certain.

1) Unsecured Revolving Credit-  Affective immediately, the monthly payment for all revolving unsecured credit will be 3% of the outstanding balance. Interest payments will no longer be used to qualify.  

IE. Credit Card Balance of $11,000, will have a $330/month payment used when qualifying.

*Now most lenders have taken this on already, so it is not that much of a surprise. However the next one will take some getting use to, with First National - and if they are doing it the other lenders are eventually going to follow suit, if not already put into action. *

2) Secured Revolving Credit - First National will take 4.6% of the LIMIT on the Line of Credit over a 12 month period, regardless of the balance owing. The Line of Credit must be secured against the property, and proof will be required of this - so the Line of Credit Statement will also be used as confirmation. 

Example: $300,000 Line of credit, payment would be $1150/month

The math for this was $300,000 x 0.46% = $13,800/12 months = $1150/month   

I do believe that all the lenders are eventually going to be on this model, well #1 is already standard with the lenders, but the 2ed one I think will be coming to them all soon. There is a silver lining, well a few:

1) Rates are still really low - so if you are doing anything mortgage wise you can lock in for great 5 and 10 year rates. 10 year being the safer bet! And at 3.69% it is pretty awesome! 

2) It you are conventional we can still do 30 year amortizations, which can help with qualifications as well

3) and the best point, if you have a licensed Mortgage Agent you are working with he/she can show you how to best achieve your mortgage/home ownership goals. Ask questions? Check out your options? I know for myself, if I can not get the client to qualify - I tell them how they can qualify, with tips and things to do to help put them into a better position for next time. 

There are still a lot of options out there & some amazing mortgage products. Realizing your dreams of Home Ownership or changing your mortgage etc, what ever the situation is - there are still solutions, and good ones. But in these days it pays to be informed and to not follow blindly in any directions. Get all the facts and decide what will best work for you, and will work for you long term. For a majority of Canadians Mortgages are not short term solutions... and you need to look at them that way! It plays true in regards to rate : the lowest rate out there is not always the best solution, and everyone has to start thinking "bigger picture". 

Talk to a mortgage professional today, like myself, to get your best options :)

Ariana Leroux

Licensed Mortgage Agent 

w/The Mortgage Group AB

Leroux Mortgages

P:780.952.4087

TFF: 877.489.8126

W: mortgages@arianaleroux.com

E: www.arianaleroux.com

Moving Day!

So you have bought your first house, or maybe it
is your second or third. Either way today is the day
and it is exciting. You are starting a new adventure, and putting down new roots, in your newly chosen abode. You have been planning where you are going to want to put your furniture and pictures in your head, and maybe the new paint colors you are wanting to try. It is really an adventure with indeterminate possibilities.

However all the excitement can be stressful as well. There is a lot to do and you are wanting everything to run smoothly. Whether you are doing it yourself, with a moving company or friends and family are helping - what are some things you can do to help insure a smooth transition.

I found some great things on the TLC web page - they have 5 Tips for Moving.

5) Draw a Floor Plan - You know what will save you time and eliminate confusion on moving day? Try drawing a floor plan of your new home before you move. Sketch in and number your furnishings the way you want them to be arranged in each room. Then tag the furniture pieces to correspond with the numbers on the floor plan. That way, the movers know where to put each piece of furniture. You don't want to be making decisions about where each piece of furniture goes on the day of the move. It's better to make those decisions ahead of time, so the movers can carry the heavy pieces directly to the rooms in which they'll live.

4)  Be There During the Packing & Picking Up of Your Things - If you've hired movers to pack, pick up and deliver your furniture and boxes, then you need to be on hand when they're doing the packing and picking up. If you can't be there, then you should ask someone to stand in for you -- a relative or friend. The movers will issue you an inventory of all items. Look over the list carefully and make sure the inventory list is correct and legible before you sign it. If an item is lost or damaged, you don't want to find out later that it's not on their list of inventory.

3) Make it Easy on Your Friends & Family -  If you didn't hire movers and you're having friends and family members help with your move instead, then make it as easy and organized as possible for them. Don't expect them to pack boxes for you. Have all the boxes packed before they arrive, so all they have to do is pick up a box and carry it to the moving van. You can even decide beforehand which friend will be assigned to which furniture and boxes. Be sure to have plenty of beverages and snacks on hand. And send out for food if the moving encroaches on lunch or dinner. They deserve it.

2) Keep Children & Pets out of the Way - No matter who is moving your things -- professional movers or friends -- they don't want a barking dog or a rambunctious kid running around while they're carrying heavy boxes and furniture. It's distracting for the movers and it's unsafe for the children and the pets. So, it might be a good idea to have a friend babysit the children the day of the move. And the same goes for your pet. If you take them out of the equation for the day, you'll be able to focus on getting the move done.

1) Make Sure There is Parking for the Truck - When the moving van or truck arrives at the new place, it will need a place to park and unload. This can become complicated depending on what type of home you're moving into. For example, if you're moving into a house, the truck can simply park out front. But if you're moving into a high rise building, then you may need to set up a place ahead of time for the van or truck. You may also need to reserve an elevator. This should be set up beforehand, so the movers can carry things in as quickly as possible when they arrive.

Other good tips are to make sure that you mark and label everything. In boxes make sure that breakables are properly wrapped and placed in case they get slightly abused during the move. With remembering to take care in closing the boxes as well so that they can not pop open during transport. With labeling things correctly it makes it easier for the movers, or friends and family, and least of all yourself to know what room to place the boxes. There is no point moving boxes more than once to their intended spot.
Take furniture apart that can be taken apart, but take care any screws etc, to put into Ziplock bags (again with labels) to make for a smooth reassembly.

Most important before you even get to move into the house... make sure you get the keys to your new purchase. Take a moment holding those keys - they are now yours, think of all the work it took for you to get those keys & the people that helped you to realize this dream of home ownership!

Congratulations you are HOME!!

 And a Special Shout Out for my Families taking their keys today & having their FIRST MOVING DAY into their NEW HOUSES!

Justice for Geo

"...what I wrote on Facebook today is written below. 

With a message that should be shared anyway possible, 

even smoke signals if required, 

to get to the furthest reaches of Canada. "

Seeing the flowers & the red stained stones, is enough to make anyone cry. Finding out that is was a 2 year old boy who senselessly had his light snuffed out, this past Sunday, has me bawling. As a mother of 2 young kids & living 5 minutes away from this tragedy - it has hit me close to home on several fronts. This little boy, with so much unseen potential, is gone. My heart breaks for the entire family & I offer my heart felt condolences. 

Drinking & Driving is NOT ok, & what our Justice System has to realize; is a vehicle is a fast moving, heavy duty weapon, of approximately 4259+ pounds & should be treated as such! Driving a vehicle is not a right, it is a privilege. Zero tolerance should be given when someone is drinking & getting behind the wheel; especially upon causing a loss of life. I too will write a letter to the MLA & share your story & demands for change. Harsher punishments need to be handed out to people who take someone else's life, especially in regards to vehicles & impaired driving. Bail should not be granted in my opinion at all, as time needs to be spent behind bars to have the murder think about his selfish actions & the consequences to those actions. This is not an accident, it could have been prevented, a little boy lost his life, the driver should lose his freedom.

Like most people I believe this is a worthy cause, and Geo should not be forgotten, or become another stat. I know that my family, the community & Edmonton will rally around the grieving family - hopefully giving them some strength in this dark time. "Geo's Law" as called by Didi Rasmussen - is something more than worthy for us as parents, a community, a City, a Province, to demand from our Justice System. 

Our prayers are with your family. 

Please go to the Facebook page that is set up for this and read the comments & offer your support. This type of senseless loss is preventable & it is time we all stood up and fight for what is right. https://www.facebook.com/groups/Justice4Geo/

Tuesdays that are Really Mondays in Disguise

We have all had those days, especially after a long weekend. Finally get into some relaxation and BOOM back to the grind. While like most people I find these days tiring, I also find them great ways to accomplish quite a lot. These type of days tend to focus me when I am getting it from all angles, haha, like an extreme game of dodge ball. One moment of not paying attention and BAM; your out. Besides really I am on 24/7/365 but my lenders are not; so holiday time they are off for the government appointed day, and the next business day is usually insane with everyone playing catch up & me spending a lot time following up making sure I do not lose a day for my clients in the follow up.
So like TD Canada Trust Green Chair, I have chosen animals as my "theme", as I find, most times, that they can be quite soothing, energizing, fun, and yeah at times annoying too, which when telling stories makes you smile. But really I find they sooth my soul, keep my glass half full vs half empty, give me the full rainbow of emotions... and help me focus. 

I found this picture today and it totally sums up my Tuesday end of the day, I am sure quite a few of you will concur.

Pssst... I have something to share.....OSFI Made It Official!

I have some interesting news to share. From the blog post I wrote on May 1st, 2013 it seems OSFI has made it official legislation, I guess it was May 1st, 2013 (good call on my blog post).

Here goes the new info that is currently being followed by all lenders and will affect qualification for mortgages.

1) Payment Caculations: Have to use 3% of the balance, on all Unsecured Credit (so interest only payments on UnSecured Lines of Credit are inconsequential - as the 3% of the balance must be used)
 
2) Market Rents can no longer be used; a lease agreement has to be in place even it is the primary property

3) Alimony/Child Support payments being paid are calculated as liabilities (not as prior subtracted from income)

4) Deficit on rentals on T1s are now also calculated as a liability ( not subtracted from income) 

Also what I am hearing is the Finance Minister is going to try to change the amortization allotments for Conventional Mortgages, which currently can be up to 35 years depending on the lender, down to what it is for the Insured Mortgages, which is 25 years. Personally my thoughts on the matter are all mortgages should be 25 years, not the 30-40 years that we had previously. Yes it makes it easier to qualify, but it does not make it easier to pay off when ratios are continually being maxed for purchases/refinances of the past - or if rates rise. Refinances however now are max 80% loan to value, which does help keep spending under control; or at least that is the general idea. However with rates being where they are, using 25 years to qualify should not be an issue, if you are looking at true affordability...and have a goal of being mortgage free in your life time. That all being said, I realize there are strong points of view to both sides, and the grass is not always greener on the other side. But we do have to realize that there is really a bigger picture at work here - not just what we see on the News (which is another discussion all together)... however that bigger picture does affect mostly the New Time Home Buyers, with the new rules and regulations, especially since house prices are really not dropping and quite honestly in what I have seen lately been on the rise. 

If you are house shopping you need to make sure you have an experienced Mortgage Agent working along side your Real Estate Agent, to make sure you are on the right track - helping you to meet your goals and education you along the way. GO back and read the blog about Eye Openers to give you more information...but the 4 points listed above are in full swing, ask me how it could affect you..... and get your ducks in a row today. 

Mothers Day Weekend!

So Mother's Day is this weekend and what do you have on the To-Do List? If you are like me, we have a large Mother's Day Dinner Planned with the whole of one side of the Family. :) However this year we are doing something different, and I like the idea, so I figured I would share. Usually for Family Dinners it is done at either my house or my Mother in Laws house. Either way, one of us is doing the bulk of the work with not a lot of intervention or help. It can get to be a lot of work & money, when you are thinking about arranging and cooking for 16 people on average, and if we add some of my family to the mix that number jumps up. Plus for myself, I tend to like to set a Martha Stewart Type table... everything looks "just-so"... ha ha ha ha; have a good laugh. My husband usually does when he sees me setting the table.... however my point is it gets to be a lot of work. Being that I am a full time Mortgage Agent, and full time mom and wife... adding more to an already busy plate gets to be.... well exhausting.

This year we have a different plan: dinner will be at the Mother in Laws place (which is super great), but we are doing it as more of a Pot Luck! So every couple has to bring something to the meal. All together we have gotten it so we have a super full dinner with everyone bringing something. This will take the stress off the "Chef" and the time spent in a hot kitchen. Cause lets face it, when family is around we are supposed to be spending time with everyone... and that means the Chef too (instead of spending all the time in the Kitchen). It will also cut down on clean up time, as everyone is responsible to take their own container home for washing! :) Besides all that, it is usually (and this is not to say there are not some fabulous men out there that cook) the "Mom" that is doing the cooking... and a day that is supposed to be for her, she should not spend all her time in kitchen preparing the meal for everyone else. 

Another thing is what to get mom for Mothers Day? There is the tried and true, flowers... those always work some magic especially if you have payed attention and know what kind of flowers are her favorite. However is money is tight there are some great home made projects you can do with the kids or on your own to give to your Special Mom! This link is awesome for some ideas! Homes and Garden Website to see some really neat ideas that are sure to make your Mom smile! Me I will be sticking to the tried and true, FLOWERS. I am going with Swish Flowers  they can make your flower choice unique, and being such, they are my go to place, plus in my busy schedule all it takes is a phone call... the ladies are helpful and awesome. 

          All in all it equals = Awesome and Stress Free for me!

Have a wonderful Mothers Day Weekend!!! And if you are one of the moms out house hunting this weekend, give me a call 1st, we will set up your pre approval in record time! And you can have a stress free House Shop!!!

Warm Weather & Your Pets(/Kids)

So YIPPIE Alberta, we have had some wonderful weather... and knock on wood seems like we can expect some more. Some temperature specs for the next 7 days.

WED 19°C  THURS 24°C   FRIDAY 11°C    

SATURDAY 21°C   SUNDAY  29°C   MONDAY 24°C 

There are some good things to keep in mind with weather like this in regards to your pet/children and your vehicle. Here is what temperatures look like in your vehicle in weather like this....

Please keep this in mind, for even just that "quick trip" you are taking into a store. If you are going to leave your dog in your vehicle, maybe it is best to leave the pet at home, or bring someone with you and have the dog outside while you are inside?? There are a lot of other solutions besides leaving them in the vehicle.

How Dogs Regulate Their Body Temperature:

Dogs are endothermic; regardless of changes in environmental temperatures, they need to maintain and regulate their own body temperature within a set and safe range. The average healthy dog’s body temperature is 101.5 ºF / 38.6 ºC. When your dog’s body temperature increases, heat is lost from increased blood flowing at the skin surface. As a dog breathes in, air travels through the nasal passage and is cooled before it reaches the lungs (less so in short nosed dogs).

As the environment becomes warmer and/or more humid a dog will regulate body temperate and cool down using the respiratory system - mainly by panting, unlike us humans who sweat when we’re hot, dogs do not use sweating through their skin as their cooling mechanism.

A Panting Dog Is A Hot Dog: 

When your dog becomes hot the brain will send signals to different parts of the dog’s body. Your dog’s heart and lungs will work harder as your dog breathes in and out quicker and pants to reduce body temperature via the process of evaporation.

As a dog is panting, the mouth is open and the tongue is hanging out - breathing air in through the nose and out through the mouth, air passes over the tongue, saliva and moisture on the tongue evaporates, the blood in the tongue is cooled and circulated around the body.

I read a great tweet today in regards to things you can do with your pet when you are out and have no water! Grab Ice from any restaurant or sidewalk eatery, this will act as a good cool down, and it will stay cool longer! :) Fruit Popsicles also work as a great alternative! 





 Enjoy the heat! And Safe! 

Speaking of HEAT... 

MORTGAGE RATES ARE STILL AT AN ALL TIME LOW!! 

ASK ME HOW YOU CAN GET IN ON THE ACTION! 

Cool off your current Mortgage! 

And get into something HOT! 

 

HAPPY FRIDAY! Go Out & Grab A Ball!

Happy Friday Everyone the sun is Shining & temperatures are supposed to be rising! Plus on a side note there are some super happy people going into the weekend, yeah mortgage approvals at amazing rates & perfect products!

 Grab a ball and get out and play! 

Have a great weekend! 

Interesting Updates for Mortgages & Eye Openers to Qualification ....

Ok so being that it is Wednesday and the sun if out and shining - knock on wood we will get to over 15 degrees today ... I figured now was a good time to share some interesting information, its a bit of a read but worth it I think to finish it to the end. First & foremost what I am finding from most of my lenders is a change with small numbers being used to qualify the mortgage that make large differences in qualification: here are some examples:

1) Heat Caculation: it is now done based on $0.75/per sq foot of property. That means if you have a 1500 sq/ft property x $0.75 = $1125/12 months = $94.75 to use in the heat caculation. This does change ratios sometimes; considering we could just use $50-85 prior, unless of course it was Servus Credit Union then we use $200 (which is actually more accurate anyhow)

2) New Builds Property Tax Caculation: the Insurers/Lenders are going to use 1% of the purchase price when Caculating property taxes... this being said I know of one or two lenders currently that are using this model. Unless we can prove what the exact taxes are, the 1% will be used. Of course for existing houses, the property taxes can be proven via mls or solicitor

3)  For Unsecured Debt Caculations: it may start not to matter what the actual payment is via paper confirmation or the credit bureau (actually this is already in effect with a lot of lenders - and only changed on exception basis: which is not often).... this at first read does not sound to bad, but indeed it can change your qualifying ratios dramatically! What is coming into standard play is the use of a 3% Caculation when figuring out payments. So if you have for example a Credit Card with a $25,000 limit and a $21,000 balance and reporting payment is $221/month, what will be used is 3% of the $21,000 which is $630/month payment! And some lenders will do 3% of the available balance: which means the max of the card, so 3% of $25,000 which is a payment of $750! See how they can change the qualifications for you on a mortgage?

4) Secured Debt Caculations: I am even hearing in this department, that they will be using a 1.75% Cacluation for this - regardless of what actual payment it (obviously taking the higher number between the two).

We all know of course that the 25 year amortization is in full swing, reduced allotments for qualifying ratios, bye bye Zero Down and also the changes with Business for Self vs Commission Clients Income qualification... all these things do make it harder to qualify for a mortgage...However lets be positive! It is sunny out after all! And really a HUGE PLUS is RATES are STELLAR! Also if you keep in mind some simple things it will help you qualify:

1) keep your balances below 50% of the limit on your cards and Lines of Credit
2) make your payments on time
3) do not go out and get too much credit & if you get collections pay them right away. Fighting with the Creditor to see "who is right".. will hurt your credit score in the long run.
4) save your 5% min down payment (see SIX Creative Ways to Come Up With Your Down Payment)
plus your 1.5% of the purchase price for closing costs. Now on a side note here; 1.5% for closing costs in AB is quite a lot ($300,000 purchase is $3000 closing costs), however, if you can save it... after your possession you will still have money in the bank! A novel concept, but not a lot of people practice it. There are lots of costs associated with a house, that go beyond purchasing it... keep that in mind... as well as keep in mind some lenders do not make exceptions on the Closing Costs 1.5% required
6) Try not to buy the "most" house/condo/townhome/apartment.... you can afford (maxing your ratios).. keep it within reason. Talk about rates, and what if they rise? What will that mean in 5 years for your payments? Or on a Variable that you want, what happens when Prime Rises? Are you a risk taker or more conservative? Do you have a long term plan? ... and many more questions...

Make sure you have people working with you that can help you navigate around all these things and keep you informed. Finding a Licensed Mortgage Agent & Real Estate Agent are good first steps! I heard the other day a banker telling my client to not deal with a "1.800. Bobs Mortgages" and had a good laugh. I came from working in a bank before I started as a Mortgage Agent and know the pressures they face as "bankers". My largest thing is simplified in this statement "Jack of all Trades. Master of Nothing" Who do you want to handle your mortgage? The person that lives and breaths only mortgages daily or the person that also handles opening/closing accounts, RRSP/Mutuals, Credit Cards etc etc....  I also know that in our society "Commission Employees" gets a bad rap. However think of it this way, as a Mortgage Agent, I am 100% Commission Based Income, but I do not get paid until your mortgage closes. I have a vested interest in making sure you have a great mortgage product, are happy and informed. I am most times sending in your documents at 11pm at night so that the lender has them 1st thing in the am, for a speedy turn around or taking your call at 11pm because you have a question that is bothering you and you cant sleep until it is answered (just as two examples) ... the banker is salaried, when he/she goes home (4pm lets say), he/she is not thinking about your mortgage or if you will get the house your heart is set on, or where they are in your process. Another great note, is usually I can deal with that same bank for you! So you get to have your cake & eat it too! My job, and why I love it so much, is I am in the trenches with you, navigating the plethera of different products/services/rates/documents etc etc... trying to get you the best mortgage you qualify for and really working so you get your Home. My day is 24/7, 365 days a year! :) I Love my Job! I am sure I am just as excited as my clients when they get their keys to their new house every single time! I am not a 1.800.Bobs Mortgage  ... I am your Licensed Mortgage Agent :) Now how cool is that! :)   (que music)  

Lets Get Your Ducks In A Row! 

www.arianaleroux.com

mortgages@arianaleroux.com

M:780.952.4087

SPRING LAWN CARE

When you invest in a brand new home, you want to have a fresh and well-manicured lawn. The appearance of your yard can dramatically impact the curb appeal of your home. After winter, performing lawn care maintenance has never been more important. After a long rest throughout late fall and winter, your lawn will wake up hungry and ready to grow. If you take the time to learn how to feed your lawn, strengthen it, and get it off to the right start in the spring, your yard will be the envy of the block.  

 

                           Doing the Right Things At the Right Time 

 

You don't have to hire a professional lawn care company to rejuvenate your lawn and then maintain it, but it’s definitely an option. If you're willing to take time to learn what steps you'll need to take and to put in the time, you can feed your lawn and prevent weeds from growing at the same time. Doing lawn care on your own can give you a feeling of pride in the way your home looks from the outdoors.  

 

                           Steps You'll Need to Take in Early Spring 

 

When it's about time for the groundhog to see his shadow, it's time to start preparing your lawn for the spring. After a very tough winter, your lawn is going to wake up from a slumber like a hungry bear in search of food.  Too bad your grass can't simply get up and hunt!

If you want to ensure that you're nurturing a well-fed lawn early spring, once the grass starts to green up, is the perfect time to start feeding it.  This will ensure that your lawn grows in lush and healthy as the flowers start to bloom. Here are some valuable steps you'll need to rejuvenate your lawn at the beginning of the best season for plant life:

Aeration 

Soil compaction can lead to a loss of oxygen and a lack of nutrients.  Aeration should happen in early spring, or late fall, but never in the summer as hot weather easily stresses your lawn out.  By renting an aerator in early spring or having someone come in and aerate for you before you overseed, you can prevent compaction and allow more oxygen to reach the roots of your lawn.  

Overseeding

Next, you should overseed, which is the process of adding lawn soil and grass seed over top of your existing lawn. If you want a thick lawn that looks better than all of the rest, this step is essential.  Spread about ¼ inch of lawn soil evenly and rake out .Next spread the grass seed and starter fertilizer over the soil and water daily until the seed grows well.  Overseeding will fill in patches, make the lawn denser and help prevent weed growth.

Feeding the Lawn 

After you seed, you can feed the lawn with an all-purpose lawn fertilizer. A fertilizer with higher nitrogen content will rapidly green up your lawn.  Choose a 20 -10 -10 for spring. This will be the first feeding of the year and should be repeated late in spring as well, about 8 weeks later.  The best-looking lawns are lawns that are fed four times a year. 

                         Step You'll Need to Take Once Seeds Take Root 

Now that early spring is over and the overseeding is flourishing and thriving, you'll need to focus on keeping your lawn manicured and well-fed so that it'll be able to stand up to all of the stress of the high temperatures that the summer brings. You know, that heat we all love, but can seriously damage your lawn? All of that early energy your fertilizing has provided is now being used and your grass (and the unwanted weeds) is flourishing. Here are several steps you'll need to take to combat those pesky weeds without killing the grass you've worked so hard to nurture and feed. 

Apply a Weed Prevent Product 

Weed prevention products are designed to target dandelions and crabgrass. These products will prevent germination and aren't designed to specifically kill the weeds that have already started to grow. If weeds are already polluting your grass, you'll need to take another step. 

Apply Weed-B-Gone 

There are several broadleaf weeds that may have already started to grow. To control these, you can simply spray them with a Weed-B-Gone product that cuts off oxygen to the root. Make sure to check with city by-laws on what you can and can’t use before making a purchase.

Second Fertilizer Feeding 

Now that eight weeks have passed, it's time to feed your lawn again with an enriched turf builder fertilizer. By feeding your lawn with fertilizer again, you can make your lawn dramatically stronger and healthier before summer. Choose a 10-10-10 fertilizer now increases root mass and makes the blades of your grass lush and green. 

Take time to apply the right products to your lawn at the right time of year and to understand what to do at specific times during the year. Spring is one of the most important seasons for your lawn. During this time, it's imperative that you feed your lawn, nurture it, and supply your hungry lawn with everything that it needs to wake up from its winter nap and thrive during the ultimate growing season. 

photo credit: Gregs Landscaping via photopin cc

Lawn Care Maintenance for Spring

Posted by Trudy Rost on Thu, Apr 25, 2013 

 Tags: home maintenance, spring, landscaping

Front Yard Curb Appeal for Selling your House

Summer will come soon, I am willing it to be so... no more snow (knock on wood!) ... however when summer does start rolling in, those of you that want to sell your home, here are some front yard tips and suggestions. The flower pots are a great, cheap, simple idea that will brighten up your place - and I do this every year. Actually this year I will be adding more, to let the roses grow and let the flower get out of control in the buckets :)  Have fun... 

A good first impression can make a world of difference when you're selling your home. By upgrading your curb appeal, you have a chance to influence how potential buyers feel about your home before they even step inside.

While it's important to balance the money you spend on improvements with a realistic idea of what you can recoup, many improvements to your landscaping can cost little, compared to the benefits of increased home value and a faster sale.

Front yard landscaping should be colorful and attractive. But a garden that reads "high-maintenance" can scare people away, so it's important to keep landscaping neat and uncluttered. Below is a list of some simple ways to improve your curb appeal when selling your home. Also, here is a list of 7 unique approaches to front yard landscaping.

Get a fresh perspective: Before you can choose which projects to start with, it helps to see your landscape with fresh eyes and a broad, overall view. We get so used to our landscaping that it can be hard to pinpoint what others might see. There are two simple tricks to seeing your landscape with a new viewpoint. With both of these techniques, the goal is to forget what you think you know about your landscape and to instead see what is actually there.
The first is an old artist's trick. Stand back from your landscape, far enough away that you can see all of it at once. Then squint your eyes until they blur, and try to clear your mind.
There may be areas that, when viewed with blurred eyes, appear dark and overgrown. Some areas might feel messy because there are too many small plantings, statues, or pots. Or, you may have an area that is bright and clean, but a little too bare. All of these insights can give you a general idea of which projects to tackle first.
The second technique you can use to see your landscape with fresh eyes is to take some black and white photographs of your landscaping. Taking color away can make a familiar space seem new, so you can see it with objective eyes. Nowadays, most digital cameras have a black and white setting, so this is easy to do even if you're not a techno-whiz.

Define the borders and add mulch: Clean edges fool the eye into seeing the entire landscape as neat and well-maintained. If lawn has crept into your garden beds and created an uneven line, then defining the border can improve the look of the whole landscape.
Start by laying out a garden hose, or using spray chalk to outline the new border. Don't make the beginner's mistake of creating a wavy, "drunken snake" of a line; instead go for broad, sweeping curves that are in scale with the size of your home. Then, use a mattock or pulaski to chip away at the grass until you have a clean, attractive line.
Once you've established a neat border, a layer of wood chip mulch adds a refined look. Not only does it help keep weeds down during the selling process, but the bright color is attractive, smooths out an uneven soil surface, and generally gives the landscaping a professional finish.

Prune overwhelming shrubs: While pruning can be tough to tackle if you don't know what you're doing, there are a few simple pruning techniques that can make a fast difference.
Just remember that you don't want to prune anything severely if you can help it, or attack anything with the hedging shears unless the plant is quite clearly meant to be a hedge. That kind of pruning makes it obvious that the maintenance got out of control, which is not the signal you want to send to potential buyers!
Instead, focus on subtler ways of pruning. One technique that makes shrubs look neat with little effort is to "skirt" them. Skirting is when you prune around the base of a shrub, removing any branches that are within 6 inches of the ground. This gives a more open appearance, and works wonders on Rhododendrons and other shrubs that can look moundy and overwhelming when sprawling on the ground
Another good pruning task is to gently prune any plant that is touching the house. Plants that lean on the house can cause chipped paint as well as mold and ant infestations. If your buyer has a home inspection done, it's a problem that will be noted in the report. Pruning plants 8 inches to 1 foot away from the house will give the landscaping a more open appearance, as well as give you room to power wash the house or touch up paint as needed.
The only shrubs that should be pruned heavily are those that are flopping over a walkway, blocking the view from the street to the front door, or keeping light from streaming into a window. Even then, it's better to thin plants gracefully or consider even removing them, rather than going in for The Big Chop.

Add color with paint and pots: If a focal area isn't drawing the eye as it should (think front door, patio and seating areas), a bold shot of color can be just what's needed. While the obvious solution is to use container plantings, there are a few important points to remember.

First, less is more. Choose just one or two larger pots that have a distinctive color or shape, rather
than lots of small pots that can feel cluttered.
Next, go for a simple one- or two-color planting scheme that highlights what is special about your home, like the color of the stone, trim, or surrounding shrubs. This keeps the focus on your home, rather than on the individual plantings.
Lastly, don't be afraid of paint. If your patio furniture looks tired and worn, it will be hard for potential buyers to envision themselves sitting there. Freshly stained or painted patio furniture can draw the eye and help buyers imagine the great times they'll have in their new landscape. Choose a color that picks up on some element in the landscaping, and add a few cushions to set the scene.

Ask for help: Most landscape designers offer a one-time consultation service. If you're having trouble deciding what to focus on, even a short meeting with a professional can help you pinpoint the tasks that will bring the greatest return.
As you can see from these projects, even a small investment in the landscape goes a long way towards increasing your curb appeal and making it more likely that buyers will fall in love with your home.

From : Landscaping Network.com