Are You Comfortable With Your Mortgage?

June 2012 Matthew Chan, AMP, CA, MBA Dominion Lending Centres Downtown Financial Phone: (604)773-2775 Cell: Fax: E-mail Website DID YOU KNOW... By any measure – health, education, housing or income – Canadians are far better off than residents of the developing world. But they’re also better off than many of the planet’s richest countries, according to the Organization for Economic Co-operation and Development’s latest quality-of-life assessment, released last month. In a comparison of 11 wellbeing indicators in 36 countries, Canada placed sixth, behind top-ranking Australia and third-place US. Norway, Sweden and Denmark also finished ahead of Canada. Click here for the full Globe and Mail article. About DLC Leasing Inc * DLC Leasing is the leasing division within Dominion Lending Centres Inc. * Our leasing programs provide up to 100% financing on business-related equipment. * Leasing options include new equipment leasing; used equipment and vehicle leasing; customized solutions through vendor finance programs; and lease-backs –where the lender buys equipment from a business owner and the owner leases it back. * Technology, heavy equipment and trailers, furniture and hospitality equipment, and manufacturing and industrial equipment are just a few examples of available leasing options. * With access to multiple lending sources, Dominion Lending Centres’ Lease Professionals can cater to leasing deals for a variety of credit scenarios ranging from A to C credit quality. * Because many of our Lease Professionals are also licensed mortgage agents, we can offer standard equipment leases and creatively structured solutions for seasonal, new or growing companies. * Working with someone who is both a lease and mortgage expert enables you to even use commercial and residential mortgage and property credit line products, alone or in combination with lease financing, to help achieve the best solutions for your equipment acquisition needs. * Our Lease Professionals can even break up large-dollar transactions into multiple leases across a number of funders to ease and simplify the approval process. This month’s edition shows that Canadians are comfortable with their mortgages, as well as offers some money- and time-saving renovation tips. Please let me know if you have any questions or feedback regarding anything outlined below. Thanks again for your continued support and referrals! Canadian homeowners are comfortable with their current mortgage, focusing on reducing their mortgage faster by making lump sum payments, reducing amortization periods and refinancing with lower interest rates, according to the Canadian Association of Accredited Mortgage Professional’s (CAAMP) most recent survey report released May 30th – Confidence in the Canadian Mortgage Market. Following are just a few key highlights from the report: 74% of mortgage borrowers who renewed in the last year saw their new interest rate decrease. On average, the interest rate was reduced by one-half percentage point Borrowers are making significant efforts to accelerate mortgage repayment, such as voluntarily increasing their regular payments (23%) and making lump sum payments (19%), with some borrowers (10%) doing both Approximately 50% of borrowers pay $100 per month (or more) above their required payments Recent buyers indicate that their expected amortization period will be about 20% shorter than their contracted length Mortgage brokers account for 26% of all mortgages. For borrowers who took out a new mortgage in 2011, 31% obtained it from a mortgage broker 83% of Canadians have at least 25% equity in their home “Despite daily warnings in the media about mortgage indebtedness – or maybe because of them – Canadians are making responsible decisions about their mortgages and they’re exhibiting confidence in their own situations,” said Jim Murphy, AMP, President and CEO of CAAMP. “We should feel encouraged by this behaviour – it means Canadians are well positioned to weather a potential rise in interest rates” As always, if you have any mortgage-related questions, I’m here to help! Everyone has a different reason for wanting to renovate their home. You may be looking to make a change in the way your home looks or feels, or you may want to fix a maintenance issue or make your home more comfortable or energy efficient. Whatever your reason, undertaking a renovation involves a number of important decisions. To help you make more informed decisions, Canada Mortgage and Housing Corporation (CMHC) offers a number of tips, tools and resources like the Before you Renovate: Renovation Guide. Consulting these resources before you begin can help you save time, money and a lot of frustration – resulting in a better overall renovation experience. First, always take the time to thoroughly plan your renovation before you pick up a hammer (or the phone). Mistakes on paper are much easier and less expensive to fix than mistakes on the job. Taking the time upfront to identify your priorities and how you want to achieve them can save you a great deal of expense (and more than a few headaches) further down the road. Next, decide whether your planned renovation is practical. For instance, that addition may look great, but can your home’s systems handle the additional heating, lighting and plumbing requirements? Learn to draw the line between what would be nice and what’s really essential, and consider hiring a qualified professional early in the process to help guide you toward what’s practical for your home. It’s also a good idea to think about the long-term impact of your renovations. For example, renovations that make your home more energy efficient could pay for themselves through years of lower monthly utility bills. In addition, think about your family’s future needs by making sure your design is flexible enough to adapt to changes as time goes by. To avoid going over budget, have a clear idea in advance of how much your renovation will cost. CMHC’s Household Budget Calculator is designed to help you understand what you can afford. Get written estimates from at least two reputable local renovators, architectural firms or materials suppliers and, if they ask for a deposit, make sure it’s a nominal amount and request a signed receipt. If you need help financing your renovation project, it may be beneficial to refinance your mortgage at today’s great low rates! And if the renovation will make your home more energy efficient you may even qualify for financial assistance. Answers to your questions are just a phone call or email away! We are Canada’s largest and fastest-growing mortgage brokerage! We have more than 2,000 Mortgage Professionals from more than 350 locations across the country! Our Mortgage Professionals are Experts in their field and many are ranked among the best nationally. We work for you, not the lenders, so your best interests will always be our number one priority. We have more than 100 mortgage programs, making it easy to choose the best fit for your unique situation. We close loans in all 10 provinces and 3 territories. We can process your mortgage in as few as 7 days. We are the preferred mortgage lender for several of Canada’s top companies. Dominion Lending Centres’ Mortgage Professionals are available anytime, anywhere, evenings and weekends – and we’ll even come to you! 1428 West 7th Avenue Vancouver BC V6H 1C1