In March, Maclean’s warned that the Canada Mortgage and Housing Corporation, the quasi-governmental insurer that underwrites $500 billion of residential mortgages, answers to no one—not Canada’s top financial regulator or even the minister of finance. That all quietly changed last month when Ottawa passed a law that puts the CMHC strictly under the watchful gaze of both the finance minister and the Office of the Superintendent of Financial Institutions (OSFI).

With the new law, CMHC must hand over “prescribed books, records and information” and make those records available to the public. The legislation also allows the minister to set capital requirements and impose fees to compensate the government for the risks it assumes by backstopping mortgages.

CMHC has always said the money it sets aside to cover insurance losses exceeds that required by OSFI. But Finn Poschmann, a C.D. Howe researcher, told the House of Commons finance committee the new law is overdue. “There are a number of informal arrangements through which our oversight agencies are able to have a look at what it is that the CMHC does and the risks to which taxpayers are exposed,” he said. “However, it is an informal arrangement. It’s good to have this in legislation.”

It will be very interesting to see what if any changes take place.

If you’re wanting to do something, better get it done quick!

604-273-2002 or on the web

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!

As you probably know, credit is one the most important factors in the mortgage approval process.

The length of time that information must stay in your report depends on: the province or territory where you live, and the type of information

The following charts illustrates how long it takes before negative credit information is removed from your credit report by Equifax.

The unfortunate fact about the info above is the small print that says ‘from the date paid or last activity’.

As soon as you pay it, it becomes new again.

Let’s say the debt has been on your bureau for 5 years. It has a lessening effect as time goes by, BUT as soon as you pay it, it becomes NEW again and NOW stays on your bureau for another 6 years AND affects your score even more.

You may want to contact me first for a few secrets that will help you move around these roadblocks.

I can tell you one thing for sure: Having strong credit is essential in today’s world.

And I can show you how to get there.

604-273-2002 or on the web

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!

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

The second tactic is to outperform the market. This means ensuring your property increases in value at a greater rate than those in your surrounding market. One way to do that is through renovations – but not all projects are created equal when it comes to generating a return on investment (ROI).

Here are the top four “renos for ROI”:

1. Building an income suite (also knows as a rental suite)
This is by far the most profitable reno a homeowner can undertake. You may want to look into refinancing. I think you’ll agree with me that taking cash out of your home to build an Income suite that typically has a 150% to 250% ROI sounds better than most major investments out there.

2. Painting
This is an inexpensive way to freshen up a property. Picking neutral tones and doing a good job are key. Ask me about a referral for this job. This simple reno project can give a 100% ROI.

3. Renovating Kitchens and bathrooms
Kitchens should be bright and spacious with a smart layout. Replacing old appliances with inexpensive and more efficient newer ones also adds a lot of appeal. Bathrooms are equally important. The more you have, the better the ROI. This delivers about 75% to 100% ROI.

New Flooring
This has a dramatic impact and hard surfaces are the way to go. Laminate flooring is inexpensive, easy to lay, durable and looks great. With modern styles and improved design, it has become the flooring of choice for real estate investors. New flooring can generate an avg. of 70% to 90% ROI.

Quickly fill in an application here and we can get you approved before the new limiting mortgage rules come into affect March 18, 2011.

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

Don’t get me wrong, I’m not saying don’t apply.

I’m saying, don’t apply yet.

Do you suspect there may be an issue with your credit, if so, you’re better off pulling your bureau yourself. Your score will not be harmed by inquiries into your own credit report. Whereas, if you apply on line or in person, you have pretty much agreed to have your credit bureau pulled by a third party.

To have your credit pulled today only to be told that your credit’s not up to snuff, is less than productive. As per my previous blog on credit, frequent inquiries can have a negative effect on your score.

So what should you do?

Regardless of whether you suspect an issue or not, you should pull your credit at lest once a year. You may be surprosed to learn that almost 80 percent of people have errors on their credit reports, 25 percent of which are serious enough to cause a person to be turned down for a job or a loan.

Though your payment history accounts for about 35 percent of your credit score, late payments within 6 months have the greatest impact on your score. You might also be surprised to hear that collection companies are notorious for keeping poor records. If you have an account in collections, you might want to send a letter to the collection company asking them to provide verification that the debt in question is yours. If a collection company is unable to verify your debt, they must remove the item from your credit report.

If you think you may have a late payment or collection on your credit bureau, instead of applying, go to www.Equifax.ca and follow along with the video below.

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

Sure, you wish there were a few more zeros on there, but it’s the vanishing act that’s the killer.

Tax time is the worst, you can see how much money you made, but your credit card is still maxed and you don’t have much to show for all your hard earned income.

Are your credit cards floating near max?

Are you dipping into you overdraft?

Have you checked the interest rates on those cards lately? Add it up. You may be surprised how much interest you’re paying each month to carry that debt.

Imagine the 28% or higher interest that these credit card companies are charging, it’s highway robbery.

These types of debts are UNSECURED, hence the wickedly high rates.

Your house on the other hand is considered a very reliable security, so mortgages offer some of the best rates around. (Especially NOW)

You may already be seeing the benefit of taking advantage of these historically low rates to save a ton of interest charges. Do the math, compare current mortgage rates with the interest rate on your latest credit card statement.

Now imagine rolling all that debt into your mortgage. You consolidate your debt into ONE payment, save a TON of cash in interest and improve your cash flow.

And the kicker, you’re credit score will go up faster than ever before.

As an example, if you have a $250,000 mortgage at 5.5% plus high interest credit cards and other loans of say $30,000; your total monthly payment could be $2,426. Now if you took that $250,000 and added on an approximate $5,000 penalty to refinance your mortgage, you may be able to potentially roll it all into a new $285,000 mortgage at 3.64%.

AND if you do it before the new rules kick in, you may still take advantage of the extended 35 year amortization.

This will reduce your overall monthly payment to $1197.00.

That’s a monthly savings of $1229.

Your monthly payment has been reduced, you’re saving a ton on interest charges, and all of your high interest rate credit card debts are gone. Imagine if you funneled some of that cash flow back into your mortgage or invested it!.

You may want to call me before these rules change.

Remember, when it’s gone, it’s gone.

You will no longer be able to take advantage of the 35 year amortization or refinancing up to 90% of the value of your home.

Call me today at 604.273.2002

PS – This type of refinance can also be used to withdraw cash for investment purposes.

Please leave your comments below.

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