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

Before you rush out to pay off student loans, vehicle loans, visa’s and mastercards’s, you may want to call me first.

Paying off your bills depletes your savings and may eat up the cash you were planning on using towards the down payment.

Don’t get me wrong, being debt free is a great idea, but if it hinders your purchasing ability, it might not be your best option.

On the other hand, if you need to lower your total debt to income ratio, paying off some debt may be a good thing.

Typically, debts with the highest monthly payments affect you qualifying ability the most.

Remember, there so much more to a mortgage than just great rates

For the Right Advice at the Right Time

604-273-2002 or on the web

at 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!

Character is the general impression you make on the potential lender. The lender will form a subjective opinion as to whether or not you are sufficiently trustworthy to repay the loan. The length of time at your current employment and your current residence will be considered. The longer you have been at both, the higher you will score on the character scale.

Collateral is additional security you can provide the lender. In real estate transactions this generally means the property. If for some reason, you cannot repay the mortgage, the bank wants to know that the real estate the mortgage was taken out for, is good and marketable real estate. A real estate appraisal will determine the value for the property in today’s market. The appraisal will also indicate to the lender the type of property being financed and any deficiencies that may affect the ability to re-sell, in case of default. Generally, a property located in a North York sub-division is considered a better risk than a farm in rural Ontario. Simply, there are more buyers for the home in the city than for a rural farm and therefore is easier to re-sell.

Capital is the money you personally have invested in the purchase, otherwise known as your down payment. The more of your own money you invest as a down payment, the more likely that you will do all you can to maintain your payment obligations. This fact was evident during the recession of the 90s where a large number of the power of sale properties, were at one time, purchased with small down payments. Capital is also reflected by your ability and willingness to save money and accumulate assets. The higher your net worth, the more you have as a cushion for repayment in the event you run into a financial set-back.

Credit is the evaluation of your habits in performing credit obligations. The information about your credit history is stored at the “credit bureau” and indicates how well you paid your bills over the last 6 years. All major credit cards, auto loans, leases etc. are reported to the credit bureau. A lender will evaluate your ability to maintain your obligations and try and determine how well you live within your means. Some individuals make the mistake of not paying the minimum monthly obligations on loans and credit cards with the expectation of making a larger payment the following month. These missed payments appear on their credit report branding them as chronic “late-payers” for the next 6 years.

Capacity to repay the loan is probably the most critical of the five factors. The lender will want to know exactly how you intend to repay the loan. The lender will consider your income as it relates to the loan that you are applying for. Does the monthly carrying costs of the loan represent less than or equal to 35% of your total monthly income? If it is, the probability of you successfully repaying the loan is fairly high. Prospective lenders will also want to know about any other sources of income you may have to repay the loan, if your steady income stream is interrupted.

You may want to chat 604-273-2002

Mark Fidgett, Your Vancouver Mortgage Broker For Life

www.notapennydown.com

604-273-2002

P.S.  Who’s the next person you know who’s ready to tell their landlord to take a hike? Be sure to give me a call so we can help them get on the path to owning their own home!

Imagine buying it, only to find out that it was a previous Marijuana Grow-op.

The Property Disclosure Statement DOES NOT protect you.

Remember, the Property Disclosure Statement or PDS as it’s referred to in the industry, is simply a bunch of questions that the seller must answer truthfully.

When completing the statement, the seller is asked to respond either “yes, no, do not know” or “does not apply,” to questions such as “are you aware of any water problems” or “are you aware of any structural problems.” or “are you aware if this premises or property have been used as a marijuana grow operation or to manufacture illegal drugs”

Imagine if someone fibbed?

There are many cases as well when sellers cannot complete the PDS, such as when the property is rented and they have no personal knowledge about the physical condition. They simply draw a big line down the middle and put N/A (not applicable)

Today’s video shows you exactly what you must do to avoid buying a previous Marijuana Grow-op

Below are two other videos that show some of the tell tale signs of a Grow-op cover up and how some home inspectors may be missing the boat.

For all your mortgage questions,

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

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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

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

I was at the gym this morning with my wife and we were both observing one of the personal trainers with their client.

Watching him train his client with obvious poor technique, made me think about clients who walk into a bank, ask for a mortgage specialist and also get poor advice.

The problem is, as with the member at the gym, if you don’t know any better, it’s easy to believe that what you’re getting is expert advice.

Simply having a certificate doesn’t make you an expert.

A client called me the other day. He made it clear that he was shopping around for a mortgage, and was only interested in rates.

I explained that I didn’t discuss rates on the phone, and we ended the conversation.

Two days later he called again, this time to tell me he’d contacted five Banks, gotten rates and fees from four of them – and now he wanted to meet with me.

At our Initial Consultation Jack started by asking about rates and fees, but I advised how it would benefit him to first learn how I worked.  Then we’d decide if I was the right Mortgage Consultant for him, and if he was the right client for me.

As our meeting came to a close, Jack said, “I’ve purchased or refinanced over 20 homes in my life and have never worked with a Mortgage Broker who does what you do.”  He said he was pleased to choose me as his consultant, and then, when we discussed my rate, he was even more pleased!

You can reach me at 604-273-2002

Please leave your comments below.

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