Archive for November, 2008

Mortgage Approval guideline for Canadians

November 30, 2008 at 4:10 pm · Filed under mortgage ·Tagged ,

It helps to understand what goes into making the decision about your mortgage approval.

Here are the key things that lenders generally consider when looking at an application.

1. Capacity to Repay

a. Gross Debt Servicing Ratio (GDSR) <= 32%

b. Total Debt Servicing Ratio (TDSR) <= 40%

2. Credit History

3. Collateral (security): The property value you are purchasing

4. Net Worth: The difference between what you own (assets such as savings and real estate) and what you owe (liabilities such as credit card debt and loans)

These are the factors one will look at when they consider you are ready for the particular property or not.

For more detailed information, please visit www.VancouverTDmortgage.com

John Hahn
TD Canada Trust Mortgage Manager

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Your Mortgage Application guide

November 23, 2008 at 4:45 pm · Filed under mortgage ·Tagged , ,

We all know mortgage process can be very complicated and energy driven. However, this does not have to be this way when you understand how it works and what it needs to get you approved.
Here are simple guideline for your understanding.

1. The Application Process:
a. Starting the application
b. Approving the Application
c. Communicating the Approval

2. Your Information Checklist
a. Personal Identification
b. Income Confirmation
c. Property Information
d. Information on your Assets and Liabilities

3. Information on whether you are purchasing or refinancing

That’s it! Not too bad huh?

For more detailed information, please visit www.VancouverTDmortgage.com

John Hahn
TD Canada Trust Mortgage Manager

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Ottawa will Buy more Insured Mortgages

November 13, 2008 at 5:36 pm · Filed under mortgage ·Tagged , ,

Canadian Government wanted to support housing market by buying $25 Billion worth of Insured mortgages with CMHC.

The Finance Department will now buy more up to $75 billion insured mortgages to help out the housing market.

For banks in Canada, this is a great news since they would love more cash flow from selling the current mortgages to Government of Canada so that they can lend more money to new mortgage applicators.

Where does our Government get money to purchase mortgages?

They sell bonds to people with an average interest rate of 2.7% and buys mortgages which will collect about 3.78% interests.
Data from the Sun

That’s right! There is a good profit for Government of Canada by helping out the mortgage market. It is a true Win-Win situation for everyone.

For more detailed announcement, please visit the the official announcement.

John Hahn
TD Canada Trust Residential Mortgage Manager
www.VancouverTDmortgage.com

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How much of home price change in Greater Vancouver market?

November 8, 2008 at 3:31 pm · Filed under mortgage ·Tagged , , ,

We all have seen our Greater Vancouver Realty market has been decreased in value. Let’s see how much of change we are undergoing in our local market.

This data is comparing year to year change from 2007 to 2008. Note: Based on October 2008.

Greater Vancouver: -3.9% with Average price of $534,214 (This is an average of Detached, Attached and Apartments)

Now…Let’s look at a broad range of price chages.

3 year comparison: 25.6% increase

5 year comparison: 69.5% increase

I think we see some great interesting point in data. For people who lived patiently in one place for 5 years, their property gained remarkable value of 69.5%. The market may be down for the year to year comparison but that does not necessarily mean we are all buying our homes to flip in one year term. Real estate is the most stable and secure investment method at least for people like me who does not want to bothered moving every year.

My Point? For an average Joe the Plumber, this decline we see now in the market is the greatest moment to choose our HOME… not just another HOUSE.

Lot of choices are out there, make sure you find the right ones. Also remember, you do not pay anything to realtors when they help finding you a home. So, take advantage of that and get some professional help from them.

John Hahn

TD Canada Trust

Residential Mortgage Manager

www.vancouvertdmortgage.com

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