Your mortgage broker isn’t a mind-reader. They don’t automatically know what you want out of a mortgage, and what worked for a previous client probably won’t be the best choice for you. Before your mortgage broker goes shopping around your mortgage application to different lenders, have a conversation about these three things.
Your short-term and long-term goals
It may seem as if your mortgage broker is only there to help you secure a mortgage, but in order to get you a mortgage that best suits your needs, you need to tell them where you plan to be a year, three years, five years down the road. If you’re planning on moving in a few years, for example, your broker may want to look into options that include a portable mortgage feature. Another example is if you think you might want to do a home renovation in the near future and may refinance your mortgage in order to pay for it. In this case, your mortgage broker would want to shop around for a mortgage with the lowest prepayment penalties and fees. Conversely, if you want to buy your forever home with no plans on moving, then your broker is free to strictly shop around for the lowest interest rate possible. In any event, they need to know your whole story before looking for a mortgage for you.
Your source of income
It’s not enough for your mortgage broker to know how much money you bring in each year. Different lenders will work with different sources of income to varying degrees, but generally speaking, if you have a traditional salary and source of income, then you have more options available to you, while if you own a small business or do freelance or contract work, then not only are your options limited as to which lenders will work with you and what interest rate you’ll pay for your mortgage, but you have different requirements when it comes to proof of income. Make sure your mortgage broker knows how you make your money before they find you a mortgage from a lender who won’t work with your situation.
How flexible you are
Everyone has payments that they have to make each month, but if you have a lot of set expenses or if you don’t have any extra money left over after everything has been paid, that affects what kind of mortgage you need to have. A fixed rate mortgage means that you are paying the exact same amount for the life of your term, and a variable rate mortgage means that your mortgage interest rate will change over time, which may affect the amount of your monthly payments. Make sure your mortgage broker knows your cash flow situation so that you don’t end up with a mortgage that requires more flexibility than you have.
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A Victoria real estate agent is facing $9,000 in fines and a 60-day licence suspension after breaking several professional rules during the sale of her father’s half-million-dollar property, according to a decision by the Real Estate Council of B.C.
Whitney Garside’s missteps — outlined this week in a disciplinary decision posted on the council’s website — included falsely advertising the property as being almost twice its actual size and advising the buyer they could avoid the property transfer tax if they paid cash directly to the seller.
The property on Burnett Road in Victoria was being sold in 2016 by the real estate agent’s father. That relationship was disclosed and isn’t among the reasons she has been disciplined.
According to the disciplinary consent order, Garside told the buyer — whose name is redacted — that by paying $42,000 cash on the side, the value of the property could be reduced to avoid paying the property transfer tax.
That cash arrangement was not shared with Garside’s brokerage, Re/Max Camosun, a failure that contravened the Real Estate Services Act.
The council also ruled that she “failed to act honestly and with reasonable care and skill” when she advised the buyer the property transfer tax could be avoided by paying cash directly to the seller.
The council’s discipline committee also found that Garside committed professional misconduct when she failed to recommend the seller and buyer seek independent legal advice, specifically regarding the property transfer tax and the cash agreement.
Another issue the council considered professional misconduct involved the size of the property in question.
The council ruled that Garside published false and misleading advertising and failed to act with reasonable care and skill when the property was advertised as 8,712 square feet, when in fact a portion of the lot belonged to the Ministry of Transportation, and the actual size was just 4,711 square feet.
A Canada-based investor has purchased a Frisco apartment community as part of a larger Texas deal.
The 330-unit Satori Frisco apartments opened last year on Research Road in Frisco.
BSR Real Estate Investment Trust bought the four-story rental community that was built by Atlanta-based Davis Development.
Satori Frisco was more than 90% leased at the time of sale. The property includes a two-story fitness center, a car care center, a dog park and a resort-style swimming pool.
The Frisco property sold along with Houston’s Vale luxury apartments in a deal valued at $129 million.
“BSR recently exited the smaller Beaumont and Longview, Texas, markets and also sold noncore properties in other markets,” John Bailey, BSR’s chief executive officer, said in a statement. “We are now using our strong liquidity position to invest in Vale and Satori Frisco, modern communities in core growth markets with the amenities our residents desire.”
Residential real estate prices on Prince Edward Island continue to climb at a rate higher than the national average, according to the latest report from a national organization.
The Canadian Real Estate Association released monthly figures for November 2020 on Tuesday.
They show that the average price for a resale home on P.E.I. is about 21 per cent higher than it was a year earlier.
Only Quebec had a bigger year-over-year increase, at about 23 per cent. Overall across Canada, prices were up 13.8 per cent year over year in the ninth month of the COVID-19 pandemic.
“For the fifth straight month, year-over-year sales activity was up in almost all Canadian housing markets compared to the same month in 2019,” the report noted.
“Meanwhile, an ongoing shortage of supply of homes available for purchase across most of Ontario, Quebec and the Maritime provinces means sellers there hold the upper hand in sales negotiations.”
That lack of houses coming onto the market compared to the demand means that in those provinces, there is “increased competition among buyers for listings and … fertile ground for price gains.”
There have been anecdotal reports for months that Prince Edward Island’s low rate of COVID-19 infection and looser rules around social activities have been encouraging people to buy homes on the Island.