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