I talk to dozens of people a day, and it is interesting to note how many of them think that they will “never” qualify for a mortgage.  The sad thing is that they don’t even take the steps to find out. .

If you are  self-employed, work only on commission (which is up and down at its best) or if you have a poor credit history, you may assume that you will never qualify for a mortgage.
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You may be wrong.  And if you don’t qualify for a mortgage now … aren’t you curious to find out:

What it would take?

How long it would take?

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For example, if you have a bad credit history, what would you have to do to repair it and how long would it take?  Depending on what has happened in the past, you may be well on your way to a mortgage a year from now.  .

If you are self-employed and can’t prove that you have a regular income, the banks may not like you, but there are lenders who are willing to take a look.  They look at your credit history, your business plan and at your current debt load.  They understand small businesses and to them your lack of earnings in your business is less important than a positive history and a good financial plan.

.If you are self-employed you may qualify for a tax-deductible mortgage plan.  It takes more work to set one of these up, but it could get you into a home this years instead of five years from now.

It’s all a matter of finding out where you stand.  That’s where we can help.

Give us a call, tell us about your concerns and we’ll work WITH you to see what’s possible.  You may be pleasantly surprised!   604-736-1855

The fact that Canada’s Jobless rate is up should be BAD NEWS right? Not this time.  Here’s why:

According to Stats Canada

Employment rose for the second consecutive month in January, with a gain of 69,000. At the same time, the unemployment rate increased by 0.2 percentage points to 7.8%, as more people searched for work. Compared with January 2010, employment was up 1.9%

The fact that more jobs have been created is fabulous news for our economy.  And the fact that more people are looking for work is also good news!

In an interview for the CTV News Channel, Derek Burleton, vice president and deputy chief economist at TD Bank Financial Group put a very positive spin on the jobless rate.

“One thing we, as economists, have been looking at is a lot of discouraged workers leaving the job market just because they couldn’t find work in areas like manufacturing. The fact that we did see more than 100,000 new Canadians in the labour force in the month speaks volume about the fact that the labour market is healing.”

How’s that for a positive spin on what we would ordinarily consider to be some very negative numbers!

However there IS a downside to all this positive news. The experts were also predicting that the Bank of Canada would increase their rates this summer because the BOC has to keep a check on too much growth.  Make sense to you?

What it means … if you are thinking about buying a house, or refinancing. Do it sooner than this summer!  Give us a call if you have any questions. We are NOT economists, but we can set you so that you are not burned if the rates increase.

Call us:  604-736-1855

Federal Finance Minister Jim Flaherty announces new mortgage rules for Canadians during a press conference in Ottawa on Monday January 16, 2011.

This is actually quite an informative piece revealing the rationale behind the impending changes.

CLICK HERE TO VIEW VIDEO

FROM OUR JANUARY 2011 NEWSLETTER …

I know that the season’s buying frenzy is just starting to abate and that your credit card statements may be giving you some heart palpitations.  Are your holiday bills just a temporary fluctuation, or a sign that you are taking on more long term debt?

Are YOU one of the many Canadians whose debt load has increased by 7% or more?  If so, the following article might ring some bells for you!

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In recent news, The Bank of Canada governor Mark Carney is becoming concerned that Canadians are taking on far too much debt, and that they believe the easy ride on debt payments will be permanent. “(But) cheap money is not a long-term growth strategy,” he warned.
“Experience suggests that prolonged periods of unusually low rates can cloud assessments of financial risks, induce a search for yield and delay balance sheet adjustments.” Bank of Canada governor Mark Carney is issuing a broad warning to Canadians, firms and governments that the financial and economic crisis is far from over and they need to rein in their appetite for cheap money.
Carney told the Economic Club in Toronto that the global recovery is so weak that advanced nations may need to keep interest rates super-low for a long period, and the U.S. may have to resort to yet another round of printing money.
“Experience suggests that prolonged periods of unusually low rates can cloud assessments of financial risks, induce a search for yield and delay balance sheet adjustments.”

For Canadians, he noted with alarm that household credit has grown by seven per cent since the recession’s trough, compared to a 3.5 per cent decline in the U.S., perhaps an indication that Canadians believe the easy ride on debt payments will be permanent.

When the reckoning comes, he warned, it could be swift and brutal. The Bank of Canada will set interest rates based on inflation, not on whether a large swath of Canadians have taken on too much debt, he added. In fact, he suggested the bank may tighten even in a low-inflation environment to discourage risky behaviour.

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As always, should you have any questions or concerns, please do not hesitate to contact me.

CALL US NOW:  604-736-1855

In his market update, our friend Rod Zwick is asking

What’s Going on with the market?

Entering into October, a question that is being asked rather frequently is “Where is the inventory?”. While mainstream media has been talking about rising inventory levels and a full fledged ‘Buyer’s market’ for almost two months, the reality is that the statistics quite simply don’t support it yet. The number of active listings across the board has been dropping since May and has really just levelled off in September without any noticeable increases in inventory levels at all. I admit that I am in fact a bit surprised by this as I have been expecting inventory levels to start to rise in the Fall and, while it may still happen, the market seems to have settled nicely in a fairly balanced state of affairs. With interest rates remaining low, and without a noticeable increase in active listings, it appears that things may remain this way through to the end of the year.

Check out Rob’s Inventory Stats Charts for various Vancouver neighborhoods.

Since we have recently added a new baby Averbach to our family, babies are on my mind!

Yesterday, I read an article from the Globe and Mail,  Getting financially prepared for a maternity leave, which focused on how important it is to plan ahead.

The gist of the article is that even if you are eligible for maternity leave benefits your finances will take a hit. Are you planning for that hit?

One of the women interviewed said,

It will probably take two years to get back to our previous levels of savings,” she says. “I don’t stress about it much because overall our finances are okay and this is just something short term. I loved having the time to spend with my babies when they are little and I’m okay with the financial sacrifice.

Babies are expensive … Are you going to be able to make your mortgage payments, without over stressing your budget? Should you refinance? Are you planning on buying a new home or on renewing?   How will being on maternity leave affect getting new mortgage financing?

The sooner you plan for the new addition to your family the better!  Give us a call if you have any questions about how being on maternity leave may affect your mortgage financing.