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Everything You Need To Know About Getting Pre-Approved For A Mortgage

August 15, 2018
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Red Deer Mortgage Broker

Red Deer Mortgage Broker

Pre-approval is a process many of first-time homeowners do not think is important when obtaining a Red Deer Mortgage. So, to give you a better understanding, Tania Grozelle, Regional Mortgage Group, have listed everything you need to know about getting pre-approved for a mortgage and why it should be step one in your home search.

The Importance of Pre-Approval

Getting pre-approved can offer a first-time homeowner at least 5 separate benefits.

  1. Affordability

When you get pre-approved by Red Deer mortgage broker Tania Grozelle, she will go through your finances and tell you what type of mortgage you can afford. Once you have an idea on the type of payments you may have, you will know what price range to shop in when looking for a home. This can prevent you from viewing homes that are outside your budget.

  1. Credibility

Pre-approval gives first-time homebuyers more credibility with sellers because it shows that you are financially capable of owning a home. Therefore, if you happen to be in the middle of a bidding war with another family, the seller will be more inclined to pick the buyer who has been pre-approved over the buyer who has not – every time.

  1. Wider Market

Most real estate agents refuse to work with buyers who have not been pre-approved. This is because pre-approval shows you are serious about becoming a homeowner, and a realtor does not want to waste their time with someone who is not truly interested in purchasing a home. Therefore, by working with a real estate agent, you will have access to a wider market.

  1. Saves Time

When you get pre-approved, your mortgage broker in Red Deer Tania Grozelle will collect all the important financial documentation and will run a credit check on your finances. By having this information already collected, your mortgage application could be processed significantly faster than those who have not been pre-approved.

  1. Better Rates

With pre-approval comes more credibility, which means sellers will be more likely to offer you a better deal. You will also have more of a negotiation power and could ask for a cheaper rate if it is not already offered.

Get Started

With all these benefits associated with getting pre-approved, you should make this your number one priority before you begin searching the residential market.

If you would like to know more information about the pre-approval process or to get started on your application, please contact The Regional Mortgage Group at 403-392-5808.

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Why Purchasing A Home Is An Important Investment For Your Financial Future

July 7, 2018
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In regards to the housing market, one of the biggest debates is whether or not you should buy a home or continue renting. As your local Red Deer mortgage broker, I explain why purchasing a home is an important investment for your financial future.

Not only does homeownership give the buyer a sense of pride, but it can also be great for long-term and short-term investment.

Long-Term Investment

In Canada, owning a home is a long-term investment because you can build equity over time. Equity is the difference between your Red Deer mortgage balance and your home’s overall value. Therefore, the more you pay towards your loan balance, the more equity you will have.

Homeowners may have the option to access this equity once by refinancing their mortgage or by selling their house. This can give you access to a large sum of money that can be spent any way you would like. It is common for homeowners to use the equity to pay off large amounts of debt, such as their credit card balance, or car loans. Others use their equity to renovate their home or purchase more real estate. You could even use this cash to go on a dream vacation or to help fund education. Many clients will set up a Home Equity Line of Credit in order to invest. This is a great way to get your equity working for you while you still own your home.

Another reason homes are a good long-term investment is that home’s appreciate in value over time and can deliver capital growth.

For more information on long-term investment in housing, please contact your local Red Deer mortgage broker Tania Grozelle at 403-392-5808.

 

Short-Term Investment

Homes also provide great short-term investment by you paying yourself every month instead of paying a landlord. You may also receive a tax credit up to $750 if you purchase a home for the first time.

If you have had to renovate your home to become more safe and accessible due to illness or injury you may be able to claim up to $10,000 on your taxes under the Homes Accessibility Tax Credit (HATC).

Another short-term tax benefit is if you buy a new home under $450,000 as your primary residence, you could submit a claim for the GST/HST new housing rebate. Contact your local broker for more information.

Contact Us

For more details on long-term and short-term investment benefits of owning a home, please contact your mortgage broker in Red Deer Tania Grozelle at 403-392-5808, or visit our website www.mortgagesbytania.ca.

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Red Deer Market Update

May 14, 2018
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Tania Grozelle, your Red Deer mortgage broker, understands how big of a commitment it is to become a homeowner. As your local Red Deer mortgage broker she recognizes that buying a house may be the biggest expense you ever make, therefore, she and her team will work hard to find you the best rates out there. To make this happen, we first need to understand the trends of the current residential market.

 

Central Alberta Update

According to the Canadian Real Estate Association, the January 2018 sales have significantly increased from the previous year. In January 2018, there were 224 units sold, which is a 21% increase from 2017. This year was the highest month of sales since 2014. By the end of January, there were 3,032 active listings, which is the most listings Central Alberta has had in winter since 2011. All property types sold in January 2018 equaled 224 units, which was about a 21% increase from the year prior.In addition, the total value of sales have increased 18.5%, totalling $78.2 million.

 

Over the next few months, however, the total sales are expected to drop. Due to the new Canadian Mortgage Rules, a mandatory stress test has been implemented on all Red Deer Mortgages. The purpose of the stress test is to see if homeowners can still afford their loan payments if there were an increase in interest rates. This new rule has said to affect Canadian’s affordability by as much as 15%. For more information on the new mortgage rules, or to see if this rule affects your affordability, please contact 403-392-5808.

 

Current Red Deer Pricing

According to Zolo.ca, the current median asking price in Red Deer is $400,000 for a detached home, $253,000 for a townhome, and $200,000 for a condominium. The total price of homes have decreased 1.52% since April 2017, and the median monthly cost for a Red Deer mortgage is $1,338.

 

If you are looking for a home in Red Deer, now would be a great time to buy due to the recent decline in listing price. Start looking now before the prices increase again.

 

Contact Us

As your local mortgage broker in Red Deer, Tania Grozelle would love to work with you and help finance your dream home! For more information on the current Red Deer residential market, or to get started on your mortgage application today, please contact the Tania Grozelle at 403-392-5808.

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Mortgage Insurance: What It Is and Why You May Need It

March 9, 2018
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Are you looking for a Red Deer Mortgage Broker? Well, look no further because the Regional Mortgage Group has the services you need. Before you continue on with the mortgage process, it is important to determine if you need mortgage default insurance, or not.

 

What is mortgage default insurance

Mortgage default insurance, also known as mortgage insurance or the Canadian Mortgage and Housing Corporation (CMHC) insurance, is a policy that protects the lenders or investors from any losses in the event of a foreclosure.  There are 3 mortgage default insurance companies in Canada – CMHC, Genworth and Canada Guarantee.  Mortgage default insurance is not to be confused with mortgage life insurance. Default insurance protects the lender against any potential losses in the event of a foreclosure. If there is a shortfall after the sale of the home, the lender would have the ability to make a claim to be reimbursed.

This insurance virtually eliminates any potential risk to the lender providing the mortgage. If the lender knows you have mortgage default insurance, they will be more likely to offer you more favourable terms. You will have access to the lowest rates available than if your mortgage were not insured.  As well, the buyer would not usually have to pay for any appraisals if there is even an appraisal required at all. Most properties are automatically approved for valuation.  However, if there is one required the insurer pays for it in most cases. One important advantage of having an insured mortgage is that when it comes time to renew your mortgage at the end of your term, you can usually transfer your mortgage to a different lender with no charge and with the best rates on the market. It should be noted that you would be required to go through the application process again in order to transfer your mortgage to a new lender. You would also not be permitted to change the mortgage amount or amortization. In this case, different rates and legal fees would likely apply.

Insurance premiums are simply added to your mortgage amount so there is no need to pay out of pocket.

 

Why you need it

In Canada, mortgage default insurance is mandatory if the down payment on your home is between 5% and 19.99%. It may be possible to still qualify for a Red Deer mortgage if you have a down payment below 5%. There may be options to borrow the down payment under CMHC’s Flex down product for strong applications.

If your house is priced between $500,000-$999,9999, you would be required to pay 5% down payment amount towards the first $500,000 and 10% towards the balance. In addition, to qualify for the insurance the maximum amortization is 25 years.  The maximum purchase amount for default insurance mortgages must be under $1,000,000.

 

Call Today!

As your local mortgage broker Red Deer, we can provide you with all the information you need in order to make the most informed decisions. To get started, please contact the Regional Mortgage Group at 403-392-5808 or tania@mortgagesbytania.ca.

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Best Mortgage Broker Red Deer – Mortgage Refinancing

February 19, 2018
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Mortgage Refinancing

There comes a time in almost everyone’s lives where their financial situation will change. Whether that is because they have had a number of unexpected bills or payments to take care of, or because they are ready to expand their family or their assets.

If you have come to a point like this in your life, you have options! Using the equity you have built up in your home by refinancing your mortgage is a great option for if you are looking to save on your monthly payments so you can spend more of your income on other expenses. This option is also a great option if you want to increase the size of your loan so you can access the additional funds to pay for renovations or another big purchase.

Another great reason to access your equity is for investment purposes. You can potentially increase your net worth by having your equity earn your money. You may wish to purchase an investment property, RRSP’s other types of investments. Many people also use their equity to realize a dream of starting a business.

So, if you want to change your financial picture, refinancing your mortgage may be the perfect solution! Give me a call today to find out more about your financing options

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Red Deer Mortgage Broker – Market Update

January 11, 2018
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If you are looking for a Red Deer mortgage broker who has the experience to answer all of your mortgage related questions and the knowledge to help you navigate through the ever-changing real estate market, look no further!

I work hard to stay up to date on both the mortgage and real estate industries – continuing my education on mortgage processes and researching the local and national markets – to help my clients find the best home and financing options for their situation.

The Alberta Real Estate Association has reported steady sales figures as the market headed towards the end of 2017. In fact, the most recent statistics released by the AREA show that residential homes sales had increased during the month of November 2017 when sales numbers are compared on a year-over-year basis.

There was a total of 4,040 residential units sold during November of 2017, which shows an increase of 16% from the total number of residential units sold during November of 2016. Even on a year-to-date basis, residential homes sales were up 9.1% as the total number of units sold during the first 11 months of 2017 rose to 54,041.

Throughout Alberta, the average sold price of homes that were purchased in November of 2017 was recorded at $385,030. This figure puts the provincial average for November 2017 2.7% below the provincial average for November 2016.

Sales were not the only thing that increased between November 2016 and November 2017. The number of new listings that were added to the Alberta real estate market also increased, rising by nearly 4% to 6,698 in November of 2017.

As an experienced and knowledgeable Red Deer mortgage broker, I am here to help you take advantage of the large number of homes that are available to you and unbeatable prices! Give me a call today to find out what financing options are available to you so you can begin your search for the perfect home! 

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Red Deer Mortgage Broker – Typical Closing Costs to Expect

December 11, 2017
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The very last step in the process of purchasing your home is closing. At this point, all final documentation will be signed, funds will be distributed and keys will be exchanged.

While this part of the process can be the most exciting, because it means you will finally be able to move into your new home, it can also be quite intimidating. There are several steps that need to be taken for a closing to be successful, and each of these steps will require careful planning and lots of documentation.

Knowing what to expect ahead of time, especially where additional costs and fees are concerned, can help you avoid any hiccups that could prevent you from closing on time. The costs and fees that are typically associated with closing can include, but are not limited to:

  • Appraisal, Inspection and Survey Costs
  • Legal Fees
  • Title and Homeowner’s Insurance Payments
  • Title Insurance

In addition to the list above, one of the largest costs that you should plan to pay at closing is the down payment you will be making on your mortgage.

The process of closing on your mortgage should be an exciting time, and I want to make sure you get to experience that excitement as you finalize the purchase of your new home. As a trusted Red Deer mortgage broker, I am here to help you figure out what costs you will be responsible for at closing and the best way to make sure you are prepared for that responsibility.

Whether you have questions about how much you should expect to pay in closing costs or you are ready to get your mortgage process started, give me a call today! As a trusted Red Deer mortgage broker, I am always happy to answer questions or to help in any way that I can!

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Exciting News!

December 5, 2017
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As a Red Deer mortgage broker, my clients are always my top priority! I am dedicated to helping every client find the perfect financing for their situation and the access I have to some of Canada’s top lenders makes that all the more possible.

 

I am proud to announce that Regional Mortgage has partnered with the Mortgage Alliance Company of Canada. The Mortgage Alliance is a prestigious and influential mortgage brokerage that is well-known for assisting Canadian’s with their mortgage and home financing needs.

 

We are proud to have partnered with such an incredible brokerage because we now have the ability to offer our clients even more home financing opportunities and access to a larger database of knowledge and experience.

 

Whatever your mortgage needs are, you can rest assured knowing that you will be well taken care of by myself and the team of Red Deer mortgage experts that I work with! Give me a call today to discuss your mortgage options and to find out how I can be saving you money on the purchase of your dream home!

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Red Deer Mortgage Broker – Top Mortgage Myths

October 23, 2017
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As with nearly every other industry, there are some common “myths” that are associated with mortgages and the mortgage process that may hold some people back from pursuing their options when it comes to purchasing a home.

I have covered some of these topics in previous posts, going more into detail about credit and pre-approvals, but as a trusted Red Deer mortgage broker, I wanted to give you a more compiled list about the truth behind some of the most common mortgage myths.

Getting the Lowest Rate Means You Are Getting the Best Mortgage

We all know that interest rates can affect how much you pay for your mortgage on a monthly basis so the higher your interest rate is, the more you will end up paying over the life of your loan.

This does not mean that interest rates are the only thing that you should consider when it comes time to make important decisions about your mortgage. There are plenty of other things to consider, such as origination fees and closing costs.

For some people, even the different loan options provided by a broker, or the broker’s availability to their clients could make all the difference.

Pre-Approvals and Pre-Qualifications Are the Same Things

This is not true and believing this myth can cause lots of problems for borrowers further down the road in their mortgage process.

To obtain a pre-qualification, all that is required is a quick glance at your finances and a conversation with a mortgage professional. Your financial situation is barely considered during this process, making a pre-qualification relatively useless, unless you are just looking for a general idea of what you might be approved for.

During the pre-approval process, you will be required to fill out a complete mortgage application. Your mortgage professional will also pull your credit report and dig further into your current financial situation as well as your finances in the past. This process is much more in-depth than the pre-qualification process, giving a pre-approval much more weight. Obtaining a pre-approval means that you have essentially been approved for your mortgage and gives you a better tool to use in the home-buying process.

Please remember, though, that a pre-approval is not an approval. Things can still change, so it is important to maintain contact with your Red Deer mortgage broker throughout the process to make sure there is nothing that comes up unexpectedly.

You Must Have 20% for a Down Payment

While it is ideal to put more money down up front, that does not mean that you have to. There are now more options than ever for potential borrowers who have less than 20% to put down on the purchase of their home.

As an experienced Red Deer mortgage broker, I am always happy to help my clients find the mortgage options that work the best with their current financial situation. Whether you are working with a small down payment, curious about different rate options, or need a pre-approval, you have come to the right place! As an experienced Red Deer mortgage broker, I am always happy to help my clients find the mortgage options that work best for your situation.

Give me a call today to find out more!

 

Source: https://www.realtor.com/advice/finance/top-mortgage-myths-debunked/

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August Market Update

September 14, 2017
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in News
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Home sales stay strong in Alberta, even as national levels are beginning to drop.

According to the latest report that was released by the Alberta Real Estate Association in July, the number of sales that were reported in the Alberta area last month rose to 5,282, which is a 3% increase over the same month last year. These sales have contributed $2,096,668,732 to the year to date total sales volume for residential sales in Alberta.

In contrast, the number of home sales there were recorded on a national level dropped nearly 12% on a year to year basis for the month of July.

The great news is that even while sales are still up in the Alberta market, prices aren’t!

In July of 2017, the average sales price of homes in the local area was recorded at $396,946. This figure is down 1.8% in comparison to the average sales price of homes recorded in July of last year.

The average sales price also fell nationally, decreasing 0.3% from July of 2016 to $478,696 in July of 2017.

With prices dropping and sales increasing, it’s no surprise that the number of new listings is also on the rise. As the Alberta market continues to remain hot, despite the cooler weather, more sellers are listing their properties and more buyers are snatching them up!

There were a total of 10,648 new property listings added to the market in July, bringing the active residential listings total to 34,109 at the end of the month. This total is 15.6% higher than the total at the end of July 2016.

These 34,109 listings give Alberta a 6.5 months supply of inventory, which is almost a full month more than the supply at the end of July last year.

If you are interested in purchasing a home in the area, give me a call today! As a trusted Red Deer mortgage broker, I am extremely knowledgeable about the local real estate market and I can’t wait to help you purchase the home of your dreams here!

For your free consultation, call (403) 606-2158!

 

 

Source: http://creastats.crea.ca/area/

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