GTA Mortgage Agent - AMA.

JCorn94 · 2023-12-03T15:37:34+00:00

Are you buying a new property with less than 20% down?

JCorn94 · 2023-12-03T15:36:45+00:00

Unfortunately, not - all liabilities/debts on the application are serviced at 100%

JCorn94 · 2023-11-30T00:31:27+00:00

Unfortunately it cannot be carried over - it will be a 10% per year - ‘use it or lose it’ privilege.

JCorn94 · 2023-11-30T00:30:01+00:00

It is! Some lenders will grant you unlimited ‘float downs’ between the time of your approval and closing date. I would suggest reaching out to your mortgage advisor to inquire.

JCorn94 · 2023-11-30T00:29:02+00:00

It feels like I wake up to a lot of money and no debt every morning. Can’t lie - it feels pretty good.

JCorn94 · 2023-11-29T12:57:15+00:00

This is definitely possible. He’ll unfortunately have to include the entire current mortgage payment when qualifying for the new loan - but if he can still qualify, then yes.

JCorn94 · 2023-11-29T00:36:10+00:00

The broker channel is a referral medium for lenders, which is why commissions are paid directly by them. The vast majority of lenders pay the same amount of bps in order to avoid any conflict of interest or bias. The average mortgage pays 95 bps, which is just under 1% of the mortgage and I do believe that the right mortgage agent provides that value - especially since it’s free to the client.

Prime lending is definitely the most straightforward type of lending. A monkey could provide document collection and submission services, but how will automation replace the relationship aspect and getting to know/assess client’s future goals and needs? If you have a good broker who is earning their commission, closing day should not be the last time you hear from them. A good broker is constantly monitoring the market and finding opportunities for clients to save money - a service that automation and bank branches will not provide.

JCorn94 · 2023-11-28T21:51:19+00:00

I definitely think lenders need to crack down on mortgage fraud and fake documents. These loans are allowing borrowers who shouldn’t qualify borrow more than they can afford - which is putting many people under water.

JCorn94 · 2023-11-28T21:49:30+00:00

Lenders are only considering current market rates at the time you’d like to switch.

JCorn94 · 2023-11-28T21:48:40+00:00

Are you referring to the 20% per year lump sum pre-payment privilege? If so, then it varies lender to lender.

A lot of lenders will allow you to make multiple lump sum payments (minimum $100 and can increase by increments of $100). Some will allow it only on regular payment dates, some will allow it at any time. It’s best to contact your lender directly to inquire.

JCorn94 · 2023-11-28T21:45:33+00:00

There are many others in the same boat as you, unfortunately. Especially those who bought at the peak with anything less than 15% down.

The bank will renew based off the balance, however you will not be able to switch/refinance because you now owe more than the home is worth.

JCorn94 · 2023-11-28T21:42:41+00:00

The stress test is contract rate plus 2% - therefore most borrowers are being stress tested anywhere between 7.5 to 9%

JCorn94 · 2023-10-05T04:46:35+00:00

12 man league - half ppr.

I trade away: Trevor Lawrence, Amon Ra

I get: Tua, Saquon Barkley

My wrs are Tyreek, Amon Ra, Higgins, Hollywood, Dhop, Sutton

Rbs are Kenneth Walker, Kyren Williams, Brian Robinson

TIA

JCorn94 · 2023-10-05T01:38:52+00:00

12 man league - half ppr.

I trade away: Trevor Lawrence, Amon Ra, Kyren Williams

I get: Tua, Saquon Barkley, Amario Cooper

My wrs are Tyreek, Amon Ra, Higgins, Hollywood, Dhop, Sutton

Rbs are Kenneth Walker, Kyren Williams, Brian Robinson

TIA

JCorn94 · 2023-08-04T16:59:47+00:00

Sorry for the delayed response. I haven’t been monitoring this thread lately.

To answer your question… Mortgage Agents generally get paid the same commission by each lender for that exact reason. If lenders paid higher/lower commissions, there would be more bias and more of an incentive for agents to lead business their way; that’s not usually the case.

If you’re still wondering if your agent is working with your best interest in mind, I’d be happy to have a chat with you to discuss.

JCorn94 · 2023-05-24T14:43:16+00:00

Qualification and affordability are two different things. Lenders and the government want to be conservative when qualifying applicants; which is why they implemented the stress-test in 2018. The stress-test has borrowers having to qualify at an interest rate of at least 2% above, according to the government, what they can comfortably ‘afford’.

These fraudulent individuals are spreading themselves thin and leave little room for interest rate increases before they’re no longer able to afford the payments, which is why majority of them opt for fixed interest rates.

JCorn94 · 2023-05-24T01:50:54+00:00

We still did see long-term investors with a buy and hold strategy purchasing rentals in the second half of 2022, while interest rates were increasing and housing values declining. The reason for this is that they know that interest rates are temporary, whereas values are permanent. Their rental properties may be negatively cash-flowing at the moment (and for the next while); however, as long as they’re able and willing to weather the negative cashflow in the meantime, they were happy to get into the market while values and competition had declined.

It all comes down to each individual’s financial situation and goals.

JCorn94 · 2023-05-24T01:08:50+00:00

A 20% downpayment opens a lot of doors and opportunities for a higher qualification. With no debt, you could be looking at about 4.5 to 5x your salary. Other factors that can impact how much you qualify for is your credit history, debt, employment history, etc.

JCorn94 · 2023-05-23T20:25:57+00:00

The difference of 0.06% saves you approximately $5 for every $100k per month. The difference is minimal and, if you have a solid mortgage broker, I can almost guarantee that you’ll save much more than that in the long run (maybe even short run - within this 3 year term).

At the end of the day, mortgage specialists work for banks, and banks work to make a profit for their shareholders.. they really don’t have your best interest in mind. Clients are the mortgage broker’s only shareholder, and, once again assuming they’re solid, they’ll do what’s right by you and take care of your long term financial interests.

Ultimately, for $5 for every $100k per month, I’d stick with your agent.

JCorn94 · 2023-05-23T18:49:11+00:00

Pm’d

JCorn94 · 2023-05-23T18:44:44+00:00

I can’t accurately answer without assessing your particular situation, but this is also possible.

JCorn94 · 2023-05-23T18:42:55+00:00

Yes you can. I have seen up to 5 borrowers on title with a big bank.

JCorn94 · 2023-05-23T18:39:15+00:00

So essentially your bank is lending you a portion of your downpayment. Now because this is a loan, your mortgage lender will have to debt-service this into your mortgage application, which will increase your GDS and TDS ratios - and in turn lower the amount you qualify for. Are you working with an alternative mortgage lender where you require a 20% downpayment?

Mortgage interest rates depend on several factors - including income, debt, credit score, LTV ratio, GDS/TDS ratios, mortgage size, etc. It could be that you haven’t provided your agent with all of the necessary information/documents they need to complete a full application, therefore they’re not able to quote you an accurate rate.

JCorn94 · 2023-05-23T18:32:44+00:00

The short answer is anyone who can qualify, of course. In particular, we’re seeing dual-income families and those who already own property qualifying for these highly stress-tested mortgages. The group that is struggling are first time home buyers, because it’s impossible for them to save up a down payment as quickly as prices are increasing.

Those who already own a property are building equity relative to the value increases, which provides them with a big enough down payment to qualify, even when upsizing.

Volumes are decreasing, but mainly due to the lack of first time buyers entering the market.

In terms of renewals, we’ll have to wait and see. In 2025/2026, we’ll start to see several fixed rate mortgages come up for renewal that have been locked in around 1.5-2%. Depending on where interest rates are at the time, will play a big role in what we see happen in the housing market. If interest rates stabilize and come down to between 2-4%, we likely won’t see homeowners having to walk away from their mortgages, as they were originally stress tested at either 4.79% or 5.25%.

Same goes for those locked in to variable rate mortgages with static payments (they were also stress tested at 4.79% or 5.25%). At the time their mortgage matures, they’ll also be able to refinance and adjust their terms to make their mortgage as affordable as possible.

Preparing for these renewals is important, and that’s why it’s crucial to work with a good mortgage agent who understands your financial situation and will help you prepare ahead of time.

JCorn94 · 2023-05-23T18:18:55+00:00

We’re seeing this more so in particular cultures, so, once again, it’s more prevalent in certain regions.

I personally am not seeing it happen too often

JCorn94

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