Jesse Smith
#60-550 WT Hill Blvd T1J4Z8 Lethbridge, AB, Canada

We work with your schedule to get you the best mortgage, right from the comfort of your own home. Call, Email or Text me today!

For a first time home buyer it's a big world with a lot of questions. That's why local REALTOR Anne French - Century 21 and I sat down to discuss some of the more common questions we encounter from first time home buyers. If you have any questions please feel free to reach out to either of us, contact info is at the end of the video!... Or apply directly for a mortgage by clicking here: https://velocity.newton.ca/sso/public.php?sc=lqvq8b5kxou8

With rates this low its not hard to save a ton of money!!! fixed rates from 1.69%* refinance rates from 1.94%*... *Subject to approval

Does it make sense to refinance even if you don’t need to pull out equity? Depending on the situation, it could save you a ton of money! With the recent drop in interest rates to record lows there is a good chance your active interest rate is higher than what you could currently get. If you were to break your current mortgage early to get these rates it would lower your mortgage payments, and if you add those savings up over the remaining term of your mortgage it may add up t...o thousands of dollars in savings over those years. What’s more, because the payment amount would be lower, you can refinance to a lower amortization (years left on mortgage) while keeping your current mortgage payments the same as they are now. Depending on your current interest rates this may save you years on the life of your mortgage payments! And when you add up years worth or mortgage payments the savings can be quite substantial, all while keeping your payments the same as they would be now. There are a few things to keep in mind before doing this: Number 1- Your payout penalty If you are in a fixed term mortgage your current lender will charge a payout penalty for breaking the mortgage early. This will either be what is called the ‘interest rate differential penalty’, or ‘The 3 Month Interest Penalty.’ This means they will charge you 3 months worth of regular interest payments, whichever is higher. Once that penalty is known we can calculate the savings of refinance and make sure that the savings in the end justify the refinance. Number 2- Making sure you are able to break your current mortgage early for a refinance Some mortgage products will not allow borrowers to break the mortgage early without the sale of the property, this information will be on the mortgage contract you signed, or you can contact the lender directly to find this information out. Because of the size of the average mortgage, savings in interest payments or years of loan payments have the potential to add up to tens of thousands of dollars staying in your pockets. If you would like to find out more about refinances or current mortgage rates, please don’t hesitate to call me directly at: 403 915 5956 or send an email to [email protected]

One of the best things about investing in real estate is the number of options investors have for financing a rental property. Investment real estate can be funded via a conventional mortgage or private funding. But in addition to these, homeowners can buy a new home with the equity on their primary residence. That’s because if a substantial part of your mortgage is paid-off, lenders will let you borrow money on your home equity. This is a far easier way for would-be proper...Continue reading

What qualifies, or disqualifies someone for a mortgage? When a bank say they can, or cannot, make the numbers work, what numbers are they talking about? The majority of people have no idea, they either get pre-qualified just to know how much they can get approved for, or make a wild guess and put an offer on a house and worry about making it work later. So, what makes the numbers work? I hope to shed some light on the subject by explaining the two most important things that... mortgage approvals are based on so that you can be a more informed shopper. The first is the Gross Debt Service (GDS) Ratio, this states that your mortgage payments (principle and interest), your property taxes, heat bill and if applicable 50% of condo fees cannot exceed 39% of your total annual gross income. These are the basics costs of home ownership and a lower ratio makes the lenders more comfortable that you can keep up with paying the bills. The second is the Total Debt Service (TDS) Ratio. This is everything included in the GDS ratio, plus all other monthly debt obligations like car payments and credit card bills. This ratio cannot exceed 44% of your gross annual income. This is the ratio that kills the most mortgage approvals, especially when it comes to vehicle loans, some vehicle loan payments are so large you may as well be applying for 2 mortgages! Lets looks at an example, for easy numbers lets say you make $100,000 a year, and your car payment is $1000, That’s already 12% of your income taken up by that one payment, so if you are close on the GDS ratio that payment alone would put you over the TDS ratio. These ratios are federally mandated to the large ‘well known’ banks (or ‘A’ lenders) as a way to protect the Canadian real estate market and all of the industries that are connected to it. There are two types of Alternative Lenders known as ‘B lenders’ and ‘Private Equity Lenders’ which are not mandated by the government and can therefore work around those ratios mentioned earlier. Most B lenders are willing to go to 49% GDS and 49% TDS, while Private Equity Lenders are less interested in income than they are in the equity of the property. Both of these lenders will however require bigger down payments and higher interest rates that you would otherwise be paying with an ‘A’ lender, along with any applicable fees they may charge.