A Sense Of Community – Harmony Mortgage Group, Doing Our Part!

Harmony Mortgage Group has always been hands on within our community.  Carie and I have always made it a priority to get involved and are naturally very outgoing people.  So when Jodi Derksen, wife of the head coach Mike Derksen for the Chilliwack Giants Football Organization, approached us about sponsorship it just made perfect sense for us to jump on board and support this worthy cause.

With an organizational motto “Training Athletes. Developing Individuals” Carie and I  knew right away that the Chilliwack Giants Football Club was more than just an opportunity for youth to play a sport and blow off some steam.  The organization is committed to the great tradition of football and teaching life skills on and off the field.  They are as committed to building good character and confident youth as they are to the actual game of Football.  This organization understands that the two aspects go hand in hand as they support the athlete and individual at the same time.

 

Congratulations to the 2014 Raffle Truck winner Kristy Slykerman!

In their own words: The mission of Chilliwack Minor Football is to provide an environment for the youth of our community to participate in learning and developing both individual and team sportsmanship. It is our wish to allow those who participate in the sport to develop and play at a level consistent with their aspirations and to develop into the young men and women that both their parents and their community may be proud of. We hope to encourage and promote improvement in physical education, healthier life styles, and scholastic standings and standards.”

Carie and I both being Moms we understand how important the two aspects of sport and individuals are and that one feeds the other.  So with the Harmony Mortgage Group Logo on the Raffle Truck this year and a commitment to hydrating all those athletes with a donation of water bottles we couldn’t be more proud to be a part of such a great asset to Chilliwack youth and the game of Football. 

Watch for us in the future as we continue to support great causes and local organizations like this one.

2013 CMFA Scholarship Winners

 

We have all done this, dreamt about the upgraded appliances and how they would look so good in our dream kitchen.  While you are at it you might as well do the addition and create that beautiful en-suite you have always wanted.  Then we stop ourselves and think wouldn’t it be nice, if only I could afford it.

The truth is if you own your own home you probably can and the best part is that you will increase the value of your home.  If your dream home is one renovation away Harmony Mortgage Group has got a smart renovation tip: 

“Renovate and Roll” Roll the cost of your renovation into your mortgage for one easy monthly payment. You can then even use your prepayment features of your mortgage to pay it off faster. Depending on what you are renovating you may increase your homes worth substantially higher than what the market can yield in a given time.   For example if you do a $20,000 dollar renovation now as you continue to build equity in the home of your dreams your home will hold more value over the next 5 years than it would if you did not do the renovations.  So a home renovated now will yield a higher return based on the market than if you didn’t do the renovations.  In some cases the home that wasn’t renovated could lose potential value when it comes to resale.  In this case it would make financial sense to renovate your home to keep up with the market using our historically low interest rates.

Do the same over ten years and you would see an even greater difference as the renovated home will continue to hold value as the un- renovated home will begin to lose resale value due to the age of the home and higher cost of updating.

Mortgage Reno Refinancing:

When funding major renovations, refinancing your mortgage lets you spread repayment over a long period at mortgage interest rates, which are usually much lower than credit card or personal loan rates. This type of financing can allow you to borrow up to 80% of your home’s appraised value (less any outstanding mortgage balance). Initial set-up costs including legal and appraisal fees may apply.

Purchase Plus Improvements Mortgage:

If you’re planning major improvements for a home you’re about to purchase, it may be advantageous to finance the renovations at the time of purchase by adding their estimated costs to your mortgage. CMHC Mortgage Loan Insurance can help you obtain financing for both the purchase of your home and the renovations — up to 95% of the value after renovations — with a minimum down payment of 5%.

Many homebuyers looking to buy older properties find themselves in a common predicament: they’ve found a property that suits them, but it needs some costly and immediate upgrades. Increasingly, buyers are adding the costs of those immediate renovations into their mortgage, instead of racking up credit card bills or selling investments to pay for the upgrades. Known as a “purchase plus improvements” mortgage, this type of mortgage covers the sale price of the home, plus any renovations that would increase the value of the property, with as little as 5 per cent down.

If you’re buying a home but want to add a second storey, finish a basement or redo a kitchen, it can make a lot of sense to add those costs to your mortgage. That way you can spread your payments over the life of the mortgage and have a cost-effective way to get your dream home. The process is quite simple:

• Obtain cost estimates for the upgrades
• Get your appraisal – for the value of the property “as is” and the estimated value of the property once the improvements are completed
• Renovation costs are included in your mortgage
• Complete your upgrades
• Renovation funds are released by your solicitor upon completion
•  

With rates as low as they are right now is a good time to think about that home renovation.  In many cases It is more cost effective to renovate the home you are in to your liking than to purchase a different home with the same attributes.  This way it is done to your specifications, your budget and of course your needs. 

Bottom Line:

If you’ve owned your home for a few years, chances are you’ve been building up some nice equity.  With mortgage rates hovering around historic lows, this is a great time to look at rolling the cost of your renovation into your mortgage. In fact, you might find enough interest savings in your new mortgage to help knock down the overall cost.

Come and talk to us at Harmony Mortgage Group.  We have options that the banks can not offer and we work for you.  We can walk you through all of your options and help you make a plan to create the dream home you have been wanting.

There were no major surprises after today’s Bank of Canada announcement – prime rate remains the same and the main concern at the moment are the weak inflation numbers.  It was hinted that if risks continue to grow and numbers don’t improve there is even the possibility of a rate cut in the future.

Single Ladies Buying Homes

What does a mortgage broker do?

 

 

 

 

 

 

Buy a lived in house, and still get to pick your specifics??  Is that possible??

 

Wouldn’t you love to buy an older home but be able to pick your own kitchen and fixtures and even the paint color on the walls???  Buying new is great because you get to pick your own colors and specifics.   But we know a way that you could save the cost of buying new and still have the option to make it what you want……..  It’s called Purchase plus improvements and it is quickly becoming an option to help clients get exactly what they want out of a used property.
How can purchase plus improvements help you?  Whether you are buying a home for yourself, as an investment, or you are a realtor and are looking for creative ways to help sell that property.  The Purchase plus improvements program can help.  It is often overlooked as an option, however if you are a buyer or a realtor this is a tool you can add to your belt.
Many people are able to look past the visible eye sores and see a final product that will be a worthy investment.  How it works is as simple as it’s title.  You are buying the home and mortgaging the improvements in with the purchase price.
It is as simple as getting estimates for what you would like to do, submitting to the lender for review then once the improvements are complete you receive a cheque from the notary in the amount of the improvements.  Some lenders will even allow you to do the improvements yourself and receive the estimated $$$ for the improvements.  This can be a significant benefit for someone in the industry or simply someone who is handy on the reno scene.
This is not for everyone when doing a large scale reno however some lenders allow what’s called sweat equity, or “paying yourself to do the work”.  This could help those of you who are motivated and trained to do some or all of the work yourself.  And in turn helping to pay the cost of the improvements. 
We are here to help you find solutions like these to either help sell your current home or to make the home you are interested in but just needs some tweaking exactly what you want.

 

Tammy O’Callaghan

Carie Pool 

Harmony Mortgage Group, helping you in your home buying search…

Planning to move? Buy first or sell first?

Any homeowner looking to sell and buy another home has to answer a lot of questions.  Some factors to consider are location, timing and budget; and some are even as simple as should you buy first or sell your home first.

These questions can be answered with a critical and honest look at the facts and figures.

There are two key factors that play into this decision, your personal risk tolerance, finances and the local housing market. 

 

Selling first – The tradition has changed

Traditionally, the recommendation has been to sell first, then find a new place.  Doing things in this order allows you to answer the critical and financial questions with more certainty.  You’ll know how much money you have and what you can afford to buy.  And, it makes it much easier to put in a clean, firm offer on a new home.

However, the housing market has changed, especially in Canada’s large urban centres where it tends to favour sellers.  With high demand, multiple offers and homes that routinely sell for well above the asking price, sometimes buyers find themselves looking for a home longer than they anticipated.  This can lead to time pressures as the closing date for the existing home approaches or you may need to rent or make other arrangements until you find your next home. 

Ways around this include extending the closing date on the existing home for as long as possible or renting until a suitable new property is purchased.  

Buy first

Those who opt to buy first, and then sell, need to have a very clear picture of their finances, as, it is possible that you run the risk of paying the mortgage of two homes at a time. The financial pressure to sell the old home could mean taking a lower price which could, in turn, change the affordability of the new home.

Bridge financing can be a solution, but you need to have a committed purchaser for the existing property.  It is also possible to make the agreement to buy the new home conditional on the timely sale of the old property but, again, in a competitive market an offer without conditions will likely win, even if the amount is a little lower.

No right or wrong answer

It comes down to what you are comfortable with.  Consultation with a realtor will give insights into local market conditions and whether they appear to be favouring buyers or sellers.  An examination of your finances with a mortgage professional will give a clearer picture of how to manage your budget and plan for potential rental costs of bridge financing.

The average first-time home buyer in Canada is 29 years old and expects to be able to put down a down payment of $48,000 on $300,000 home, according to a recent poll by the Bank of Montreal.

But the study, released Tuesday, also found that price expectations vary widely, depending on where the home buyer lives in.

Those in Atlantic Canada say they expect to spend an average of $224,000 on a first home, while those in British Columbia anticipate to pay an average of $454,000.

Vancouver topped the survey as the most expensive city, with buyers there saying they’re going to shell out an average of $539,000 for a home, followed by Calgary at $474,000 and Toronto at $446,000.

BMO mortgage expert Laura Parsons says like with any major purchase, it’s important for people be realistic and prepared.

“What we tend to do is jump in the market when we’re ready, instead of starting a plan now,” she said from Calgary.

“Let’s start getting ready for it so we can start giving you good advice all along the way. Don’t be afraid to get things going.”

And while a large down payment is impressive, it does not necessarily mean that young people are diligently saving for their first home. Instead, many may be getting help from their Baby Boomer parents or friends, said Parsons.

Forty-six per cent of those surveyed also they’ll choose a fixed mortgage rate when they buy, versus 20 per cent who will choose a variable rate.

The study also found that the average first-time home buyer plans on paying off the mortgage on their home within two decades, with 20 per cent anticipating they’ll be mortgage-free even earlier than that.

Twenty-three per cent of those surveyed say they will still have a mortgage within 25 years; 16 per cent say within 20 to 24 years and 20 per cent say within 10 to 19 years.

On the opposite end of the spectrum, seven per cent say it’ll take them more than 25 years to fully own their home, while three per cent say it’ll take them between 1 year to 9 years to pay it off.

The survey also found that 31 per cent admit they really don’t know when they’ll be able to stop making mortgage payments.

The Bank of Montreal report surveyed a random online sample of 2,000 Canadians between Feb. 25 to March 5.

The polling industry’s professional body, the Marketing Research and Intelligence Association, says online surveys cannot be assigned a margin of error because they do not randomly sample the population.