A: Although CMHC will only finance a rental property with 20 per cent down, they’ll still finance a “second home” with as little as five per cent down!

So what constitutes a 2nd home?

One difference is, no rental income can be used to help qualify and it’s also unlikely that CMHC will believe you’re buying a second home for yourself just down the street, so the application really has to make sense. You may also have to sign a statutory document at your lawyer’s stating that this is a second home.

Imagine having access to insider secrets…

call me 604-273-2002

or www.notapennydown.com

As usual, make it a great day and we’ll talk to you soon.

Mark Fidgett, Your Vancouver Mortgage Broker For Life

www.notapennydown.com

604-273-2002

P.S. Who’s the next person you know who needs Help with their Stuff?
Be sure to give me a call so we can help them get on that path!

You might be surprised to hear that what you get, may NOT be what you expect.

You like me, probably believe that when you pay the additional $23.95 to Equifax, you’re getting the score that lenders rely on to determine your credit worthiness.

Well apparently, THAT”S NOT THE CASE…

First some history.

Client presents to me about 3 months ago requesting a specific mortgage.

The particular mortgage program in question is designed for business owners and comes with a minimum beacon score requirement.

That being said, I didn’t want to randomly pull the clients credit without first knowing they even met the minimum credit score requirements.

As I have always advised, you can pull your score personally, as many times as you’d like, and it WILL NOT affect your score.

As such, the client specifically paid $23.95 to Equifax to see their credit score.

Their credit was too low at that time.

I sent them away with a few credit secrets to help raise their score.

They followed my advice to the tee.

They called me yesterday as happy as can be.

When they arrived at my office, they once again paid the $23.95 to Equifax to obtain their credit SCORE.

Score was 683.

BINGO, goal achieved! Or at least we thought…

Knowing that their score met the program requirements, I too pulled their score.

BUT To my surprise, the score from my end was 635.

Just to be clear, client pulls and gets a 683, I pull and get a 635.

Why SUCH a discrepancy?

I immediately called Equifax for an explanation.

I will leave it up to your interpretation.

Please push the play button below to hear the call.

Would love to hear your comments below.

Mark Fidgett
Your Vancouver Mortgage broker
604-273-2002
www.notapennydown.com
mark@notapennydown.com

And it has nothing to do with farming..

It’s another term for mortgage fraud.

The “straw” or “dummy” home buyer scheme.

For example, a renter does not have good credit or maybe he/she doesn’t not have the income needed to get a mortgage, or sufficient down payment, either way they can’t purchase a home.

He/she or an associate approaches someone else with solid credit.

This person is offered a sum of money (a benefit, can be as much as $10,000) to go through the motions of buying a property on the other person’s behalf – acting as a straw buyer.

The person with good credit lends their name and credit rating to the person who cannot be approved for a mortgage for his or her purchase of a home.

You can usually count on other types of criminal activity dovetailing with mortgage fraud or title fraud.

For example, people who run “grow-ops” or meth labs often use these forms of fraud to “purchase” their properties.

Following are some red flags for mortgage fraud:

• Someone offers you money to use your name and credit information to obtain a mortgage
• You are encouraged to include false information on a mortgage application
• You are asked to leave signature lines or other important areas of your mortgage application blank
• The seller or investment advisor discourages you from seeing or inspecting the property you will be purchasing
• The seller or developer rebates you money on closing, and you don’t disclose this to your lending institution

Call me if you have any questions,

Mark Fidgett
Your Vancouver Mortgage broker
604-273-2002

www.notapennydown.com
mark@notapennydown.com

Here are some tips to create a captivating kitchen:

You can cut down on visual clutter by removing items you normally store on the counter.  This will help your kitchen look more spacious.

Your eat-in kitchen should have a table and chairs in it.  Buyers like to see an eat-in kitchen, but often don’t have the vision to see it as such without the furniture.

Remove window screens in the kitchen.  Screens take away from allowing natural light inside.  Plus, no one will notice they are missing.

It’s a good idea to keep some toll-house cookie dough on hand, and bake up a few cookies just before a showing…but don’t overdo it.

Keep the exotic spices and fish to a minimum when cooking the night before a showing.  Work towards achieving a “clean” smell.

Thoroughly clean all your appliances and cupboards, including the inside of your oven and microwave.

Set the dinner table with your best china to stimulate your buyers’ imagination of the dinner parties they’ll host.

Many buyers will look inside your cabinets, so make sure the inside is organized and clean.  Also store non-essential items elsewhere to make the cabinets look more spacious.

Clean as much as possible off the countertops.  Items such as the coffeemaker, toasters, can openers, salt and pepper shakers, recipe boxes, and dish draining rack can be put away.

Make sure that your counter is spotless and shiny.

If you keep fruit or flowers on your counter, be sure they are always fresh.

If your cabinets show wear and tear, you might want to paint them.  A simple trick to update the look of your cabinet doors is to replace your current knobs with new ones.  It’s much cheaper than getting a new kitchen, and it sure can make a difference.

Shine your faucets and knobs and use spot remover to prevent water spots.

Remove notes, pictures, and coupons from the refrigerator door.

Empty your trash cans.  Garbage and recycling bins must be out of sight.

You may want to make your home more attractive by having us approve a rate hold on the home you’re selling.

That way if rates rise, your buyer gets a lower rate!

Mark Fidgett
Vancouver Mortgage Broker
Owner www.NotaPennyDown.com
604-273-2002

LIGHTING: Open all shades and draperies during the daylight hours. Replace all burned out light bulbs with the maximum light producing bulbs. Turn on all lights throughout the house and basement prior to showing the house.

STORAGE: All clothing, shoes, hats, accessories, tools, papers, magazines, books and personal items not contributing to the decor of the room should be stored in closets or dressers. All closets should be tidy, neat and clean. Basement storage areas should be neatly arranged. Kitchen counters should be clean and free of any articles not contributing to the decor of the room. All magazines, books, ashtrays, food, bottles, containers, boxes, cans, toys, hobby accessories, tools, dishes, cookware, etc. should be stored in the proper cupboards or closets or storage areas.

CLOSETS: The interiors of all closets should present an organized, tidy and uncluttered appearance. All unneeded or unused items should be discarded. Display your storage and utility space by removing all unnecessary accumulations in attic, stairways, basement, closets and garage.

BASEMENT: Should be neat, clean, dry and tidy. All materials and tools should be stored on shelves or in cabinets. Discard as much unneeded material as possible prior to showing the house to prospective purchasers.

WINDOWS: All windows should be spotlessly clean inside and out. All window sills, as well as any space between the window and storm window should be spotlessly clean and free of any flaking or loose paint. All windows should be in good repair with no cracks. Screens should be clean and in good condition, free of rust and holes. Any paint on glass should be removed with a razor blade prior to cleaning.

FIXTURES: All bathroom and kitchen fixtures and counters should be sparkling clean. Polish chrome faucets and handles in the tub and sinks. All sinks, tubs, toilets and counters should be clean.

FLOORS: All flooring should be clean and waxed if necessary. All carpeting should be very clean regardless of its age. If the carpeting has not been steam cleaned for more than two years, now is the time to do it. Basement floors should be swept and mopped.

DOORS: All doors should be free of scotch tape, posters, decals, or stickers. All door handles should be clean and in good repair.

CERAMIC TILE: All joints between tiles should be clean and white. Use DAP bathroom tile sealer to reseal the joint between bathtub and wall and floor.

WALLS: All walls should be clean and free of gouges, scratches, smudges, scotch tape, posters, thumbtacks, etc. Walls should only have decorative items. Posters and paper pictures taped to walls should be removed and all evidence of the tape markings removed.

ODOR: Nothing smells better than fresh air. On warm days, have your windows open and shades up. Make your home feel and smell bright, fresh and clean and you will have a faster sale. KEY POINT: Make very sure that there are absolutely no pet odors.

Final Step: Experience shows that most would be buyers are concerned mostly with monthly payments. I’d like to show you a little secret how you can make your home stand out from the rest.

Mark Fidgett
Vancouver Mortgage Broker
Owner www.NotaPennyDown.com
604-273-2002

aka – High Ratio Mortgages (Less than 20% down)

1) MAXIMUM AMORTIZATION PERIOD TO 30 YEARS

The Amortization is the time it takes to pay off your entire mortgage. Not to be confused with the term of your mortgage.
Typical mortgages in Canada have terms of five years or less during which a specific fixed or variable interest rate will apply, and the mortgage can be renewed at the end of the term.

Today’s news will reduce the maximum amortization period from 35 years to 30 years.

A lower amortization period results in an increase in the monthly payment, hence making it harder to qualify.

2) Maximum Loan to Value for refinances will be reduced from 90% to 85%

Borrowers can now refinance their mortgage and increase the amount of the loan secured against their home, but today’s changes will reduce the limit on refinancing from 90 per cent to 85 per cent of the value of the home. Refinancing lowers the borrower’s equity in their home. Reducing the maximum loan-to-value ratio on refinancing will encourage Canadians to keep at least 15% equity in their home.

3) The government will no longer offer insurance for Lines of credit

Because a line of credit doesn’t have a principle reduction built into the payment, you could go on forever simply making interest only payments never reducing your balance. In view of this, the government figures it’s too risky to insure.

PS – Here’s a question for Mr. Flaherty…Why do you think the majority of refinances take place anyway? To pay off Consumer debt. Address consumer debt and maybe then you’ll be dealing with the REAL ISSUE.

What do you think of these changes?

Please comment below…

Mark Fidgett
Vancouver Mortgage Broker
Owner www.NotaPennyDown.com
604-273-2002

My husband and I are pretty competitive, always trying to one-up each other.

It was to my chagrin, therefore, when I learned that although my credit score is excellent, his is better. I have never missed a bill payment, never carried a balance, so what could be holding me back?

According to author and former financial adviser Kelley Keehn, there are lots of innocent things that can affect your score. For example, most people don’t realize there are two important dates when it comes to paying off certain credit cards: the due date and the statement date. The statement date is when the card issuer reports your balance to the credit bureau, not the due date. So even if you pay your balance in full and on time each month, your credit score may not reflect that.

“Let’s say my due date is Dec. 8 and I have a $10,000 limit. I pay it in full before the 8th and won’t be subject to any interest,” Ms. Keehn says. “But, let’s assume my statement date is Nov. 15 – that’s a very important date as it’s the date the credit card company reports to the credit bureau, not the due date. Let’s assume I make a big purchase on the 14th, say for a reno at my home, not thinking anything of it, and pay for some hardwood costing $9,000. The next day the credit card company would report that I’m 90 per cent extended on my credit card.”

If you’re not sure of your credit rating, you can get a free report from Equifax.ca or Transunion.ca that will include your credit history and current credit outstanding. For a small fee, they will include your credit score as well. A good score is 760 or higher, and anything less needs work to improve it, Ms. Keehn says. (To order a free credit report from Transunion, click here.)

She advises taking these steps to protect and improve your credit score:

1. Know your score. The score range in Canada is 300 to 900 – the higher the better – and reflects a person’s credit history over the past six years. Only 5 per cent of Canadians have a score of 850 or better. Checking your score periodically can alert you to mistakes as well as credit fraud.

2. Pay your bills on time. Making a credit card payment even one day late will hurt your score. If you’re paying online, send the payment at least three banking days before it’s due to allow enough time for the transaction to be processed. Setting up a small automatic payment to your card issuer each month will ensure you never forget to pay at least the minimum.

3. Never exceed your credit limit. If you’re close to being maxed out, make sure you pay more than the minimum or the interest due could push you over your limit. Going even $5 over your limit could lead to a costly fee from your credit card company and will hurt your score each month it happens.

4. Don’t apply for store credit cards. Even if you’re just after a one-time discount for signing up, these cards, with interest rates as high as 29 per cent, are viewed negatively by the credit bureau and drag down your score.

5. Spread out your spending. The percentage of available credit you’re using each month affects your score, so it’s better to have two charge cards at 50-per-cent capacity each than one that is maxed out.

6. Prioritize your payments. Important as they are, mortgage payments generally are not reported on Canadian credit reports, so it’s more important to make your credit card, loan and lease payments on time.

7. Beware of closing accounts. Even if you’re in a dispute with a lender, make your payments. A missed payment will show up on your credit report, can really hurt your score and is very hard to fix. When closing an account, get it in writing that it was closed with a zero balance.

8. Don’t close unused credit cards. If you have a low-interest card you don’t use, keep it open and use it periodically. Having a zero-balance credit card actually helps to improve a low score.

9. Don’t apply for too much credit at once. Don’t lease a car, sign up for a new cellphone and apply for a loan all in the same month or two. The credit bureau sees this as a sign of financial trouble. Beware, also, of being preapproved by several lenders before you’re ready to buy. Although you can check your own credit rating without penalty, preapprovals from lenders count against your score.

PS – This from Benjamin Tal this morning in TO “Significant rise in Five year mortgages will come and it will be incredibly rapid. Sooner or later all the money being injected will be used”

Not trying to pressure you, but if you have any intentions of refinancing and taking advantage of these historically low rates, better do it NOW!

Call me to discuss 604-273-2002

Mark Fidgett | 604-273-2002

“Your Personal Mortgage Consultant….For Life!”

PS – Please Don’t Keep Me a Secret

A REFERRAL is when you INTRODUCE someone you care about to someone you TRUST!

T 604.273.2002 | F 604.522.2072

W http://www.notapennydown.com

An independent Mortgage Specialist associated with the Verico Mortgage Network.

Second, getting “famous” in a farm area does not equal getting “Rich” as a listing agent.

Here’s the evolution that most agents go through to some extent throughout their career.

As a new agent…it’s all about finding some buyers to work with. Holding open houses, doing floor time, getting your feet wet.

All of that stuff is about self-esteem. “I better work with some buyers just to get some experience” and then, as they get busy and realize how hard it is to actually find buyers to work with, the next level becomes…I’m going to move on and become a “listing agent”.

So what happens?

Something very similar to this sequence:

Phase 1. I need to create a “Personal Brand”

An agent gets to observing and sees that it appears the most successful agents in the market have a slogan, and full color super-deluxe postcards, brochures, billboards and image ads.

They further deduce that must be what makes them successful.

So, they crack open their piggy bank, empty all the money they have and take it to the “full-color-super-deluxe-image-building-specialists” and give it all to them to create a one of a kind personal promotion package.

3 months later, after spending weeks agonizing over the decision of which picture of me conveys a better image…the skydiving picture or the picture of me on a horse?

The proofs are in and… It looks great!

They approve of everything, and then find out that it’s going to take a few thousand more to get the stuff actually printed…the big fee was only for designing the stuff.

Oh…well, I’ve gone this far…I can’t stop now.

I’ll just use my “power-line” from the bank to get things started.

Phase 2. I need to get my name “out there”

Armed with the matching brochures, the postcards, the website and the letterhead…it’s time to start spreading the word!

Oh, those “big” postcards cost MORE to send out?

Ok…well, let’s go for it! If I just get 3 transactions, it will “more than pay for itself”

“Repetition is the key!”

“You’ve got to get your image out there consistently over time…that’s the only way you’ll ever get that important “top-of-mind” awareness.”

So they spend, and send the postcards, buy the billboards, run the ads…and it works.

Sort of.

“Someone in the grocery store recognized me! — and I wasn’t even “dressed up”!”

“At church, Mrs. Nelander told me my brochure was lovely.”

That’s sort of encouraging…for a while…until…

Phase 3. “Hey, wait a minute…I’m spending more than I’m making!”

I better put a “hold” on this stuff until I get some money coming in. Those postcards aren’t dated, I can wait a little while, it will probably work better in the spring market anyway…now that I’ve planted the seeds.

I’ve seen that scenario too many times.

The sad thing is, there is some truth to image advertising.

The most successful agents “appear” to be successful because of the advertising they do, and they seem to be all over town with the billboards, the full-page ads, the postcards, the bus-benchs, the for-sale signs…they must have 30 listings!

All of the money they spend, and the image advertising they do creates a big stir and they get business because of it, but many times they are spending as much or more than they are making at the end of the year.

And the saddest part of it is…even if it does work, they’ve created a business that is so dependent on them, they couldn’t stop it if they wanted to.

It becomes like a big “Jenga” puzzle with all the pieces stacked on top of each other to create this business tower, and you can never tell which piece you remove will cause the whole tower to collapse.

Is it the billboards? The postcards? You can never tell.

As someone once said…”I know HALF the money I spend on advertising isn’t working…I just don’t know WHICH half!”

I realize it may seem a bit harsh…but every word of it is true. I speak to dozens of people every year who are in one of those 3 phases.

The saddest stage to see someone in, is at the end of phase 1, when they’ve already spent the money, got their proofs and have put in the order at the printer.

Those people are committed. There is nothing you can do to stop them…and when I see them again the next year…they always say “I wish I had listened.”

Anyway…go ahead and do it if you want. I’m just here to tell you there’s another way.

What if I could show you a better way, would you want to know?

You may want to email me mark@notapennydown.com

Mark Fidgett | 604-273-2002

“Your Personal Mortgage Consultant….For Life!”

PS – Please Don’t Keep Me a Secret

A REFERRAL is when you INTRODUCE someone you care about to someone you TRUST!

T 604.273.2002 | F 604.522.2072

W http://www.notapennydown.com

An independent Mortgage Specialist associated with the Verico Mortgage Network.

The amortization of a mortgage is divided up into smaller time periods called “terms”. Mortgage terms usually range from six months to five years, but some institutions will offer seven- or 10-year terms. The term is the period of time during which, with fixed-rate mortgages, the interest rate and payment amount are fixed. With variable-rate mortgages, the payment amount may, or may not, change; you should review your agreement to check when the payment amount may change. At the end of the term, you can renew your mortgage for a new term, at prevailing interest rates.

Generally, the longer the term, the higher the interest rate. Because it is not possible to know what the interest rates will be over any given period of time, many consumers seeking certainty choose a longer term with a fixed interest rate so that they know in advance, at least for a specified period, how much they will have to pay for their mortgage. This helps them to plan their finances better and enhances their feeling of security. However, during periods when interest rates are expected to fall, many consumers choose variable-rate mortgages so they can take advantage of lower rates without renegotiating their mortgage.

Amortization period compared to the term of a mortgage

The amortization period on a mortgage is the total length of time it will take you to pay off your mortgage. A typical amortization period is 25 years, but it can be longer or shorter.

In comparison, the term of a mortgage (which ranges from six months to 10 years) represents the length of time for which your mortgage agreement with a lender is valid.

Benefits and costs of a longer amortization period

Some people choose a longer amortization period because it lowers their mortgage payments: the longer the amortization, the lower the mortgage payments. This can mean, for some, the difference between buying and not buying a home.

However, the longer it takes you to pay back the mortgage principal to the lender, the more interest you will pay — which can affect your ability to save for other important things, such as retirement.

Call me to discuss 604-273-2002

Mark Fidgett | 604-273-2002

“Your Personal Mortgage Consultant….For Life!”

PS – Please Don’t Keep Me a Secret

A REFERRAL is when you INTRODUCE someone you care about to someone you TRUST!

T 604.273.2002 | F 604.522.2072

W http://www.notapennydown.com

An independent Mortgage Specialist associated with the Verico Mortgage Network.

Risks to Canada’s financial stability have gone up over the past six months because of the possibility that the European debt crisis and “severe tensions” in global markets could threaten the worldwide recovery, the Bank of Canada said Monday.

In their semi-annual review of Canada’s financial system, policy makers said it continues to function well and has actually strengthened since their last assessment in late 2009. However, they reiterated concerns about the amount of household debt that Canadians have built up amid historically low borrowing costs, and outlined how Canada’s strong economy could fall victim to fiscal troubles across the Atlantic Ocean if they fuel stricter lending standards among banks and a drop in demand.

“Many aspects of the Canadian macrofinancial environment have improved since last December, with the economic recovery proceeding as expected and conditions in Canada’s financial system generally strengthening,” the central bank’s governing council said in its latest risk assessment. Still, policy makers said, “near-term risks” to Canada have increased because of “heightened concerns that worldwide fiscal strains have the potential to cause tensions in interbank funding markets, to derail the global economic recovery, or to trigger a disorderly resolution of global imbalances.”

Policy makers said the level of risk has increased in three of five categories that they look at for their review, namely: funding and liquidity; the so-called imbalances in the global economy that exacerbated the financial crisis of 2008; and the current economic outlook.

Canadian banks’ capital levels, and the quality of what they possess, has improved since December, the central bank said, while the risks posed by household balance sheets remain “roughly unchanged” even as households’ financial vulnerability to economic shocks is growing. The rising debt-to-income ratio among Canadians, which policy makers such as Bank of Canada Governor Mark Carney have been warning about for several months, also could pose a risk to banks and the economy as a whole, should borrowers default on their loans and force banks to hold back on extending credit.

“In the event of a significant economic downturn, the credit quality of household loan portfolios could be undermined, prompting banks to tighten credit conditions and some households to reduce spending,” the central bank said. “Ultimately, this could result in mutually reinforcing declines in real economic activity and in the health of the financial sector.”

Measures being taken by European governments to get their fiscal houses in order need to be sufficient to keep investors satisfied that the problems are being addressed, the central bank said, while warning that “economic and political constraints” could complicate those efforts and lead to another period of “severe stress” in markets.

“Concerns over fiscal imbalances could also result in an abrupt increase in risk premiums and volatility for a wide range of assets and currencies,” the central bank said. “While Canada’s position is relatively strong, our financial system could be adversely affected by growing fiscal strains elsewhere.”

Also, sweeping new rules that Group of 20 policy makers are crafting for the financial sector could have “unintended consequences”’ or cause challenges for banks as they transition to whatever regime is approved, the central banks said.

“Given its unprecedented scope, pace, and complexity, there is a risk that regulatory reform could have unintended consequences,’’ the bank said. Nonetheless, policy makers said, “at least equally important is the risk that key elements of the reform agenda will be diluted, either because of complacency as economic and financial conditions improve or because of fears that reforms could harm a still-fragile recovery.”

Bank of Canada says economy is ‘vulnerable’

Call me to discuss 604-273-2002

Mark Fidgett | 604-273-2002

“Your Personal Mortgage Consultant….For Life!”

PS – Please Don’t Keep Me a Secret

A REFERRAL is when you INTRODUCE someone you care about to someone you TRUST!

T 604.273.2002 | F 604.522.2072

W http://www.notapennydown.com

An independent Mortgage Specialist associated with the Verico Mortgage Network.