Kelowna Mortgage Broker
1890 Cooper Road Unit 222 V1Y 8B7 Kelowna, BC, Canada

Ready to talk numbers? This week's Mortgage Minute is all about down payments and closing costs. First off, the good news is that it IS possible to purchase a home without a 20% down payment. However, it's important to know that if your down payment is less than 20% of your home's purchase price, you'll be subject to fees because Canadian Mortgage and Housing Corporation (CMHC) charges lenders an insurance premium on Mortgage Loan Insurance, which your lender then passes... on to you. The CMHC Mortgage Loan Insurance protects lenders by guaranteeing payments on the funds they are lending out to you. The rules within Canada for minimum down payments on home purchases are: For a purchase price less than $500,000, the minimum down payment is 5% For a purchase price between $500,000 - $999,999, the minimum down payment is 5% of the first $500,000, and then 10% of any additional amount over $500,000 For a purchase price of $1,000,000 or more, the minimum down payment is 10% Now let's chat about closing costs. Typically, closing costs are approximately 1.5% of the purchase price of your property - and they're required to be paid in full, along with legal costs, on the day of closing. Traditionally, the buyer is responsible for the closing costs, which include items such as: Property Transfer Tax: This is calculated as a percentage of the purchase price of your home. In BC, when purchasing your first home, you may qualify for a reduced or exempted property transfer tax. Legal Fees and Disbursements: You'll be required to obtain a lawyer or notary for the purchase of your new home, which means you'll incur fees for the review and preparation of documentation. Title Insurance: Most lenders require title insurance to protect them against losses in the event of a property ownership dispute, so be prepared to cover these costs as well. If you'd like further help working through the numbers, give me a call at 250.212.9124 and we'll breeze through them together. See more

Build Wealth with an Investment Property (...or Two) Across the country, Canadians are building personal wealth with investment property. The market is clearly there. In fact, the investment property market continues to be strong within most markets in Canada, with a steady supply of renters for residential, commercial and retail properties. Rental income typically pays for most, or all, expenses and property appreciation has often outperformed stocks and bonds over the... long term. This is likely why an investment property is also being increasingly viewed as a pension plan for the future - particularly since so many Canadians aren't covered by workplace plans. Over the long term, an investment property can be a great source of your nest egg retirement fund. Income properties are not just an investment for well-established business people and experienced home buyers. Savvy first-time buyers are often jumping in with both feet: purchasing a duplex or triplex, and then managing the additional units to pay down the mortgage while they make a start on home ownership. As well, parents who add up the cost of accommodations for their college-bound children are often deciding to be landlords themselves - since they know at least one of the tenants very well, and they see an opportunity to offset the cost of housing with a sound investment. There are many reasons to consider investing in property, so if you're thinking about building wealth with an investment property, send me a DM. I'll help you determine the financial calculations that you'll want to see for positive cash flow and capital appreciation. See more

I'm taking requests for what YOU want to learn about! What do you wish you knew about home mortgages, your finances, various forms of budgeting, etc.? Comment below with your queries, and I'll help educate you so you can have a positive and effective influence on your financial foundation for today and into the future.

Are you familiar with the role that CMHC plays in many home purchases? The Canadian Mortgage and Housing Corporation (CMHC) is currently one of the three main mortgage insurers in Canada which allows people to purchase a home with less than 20% down. A mortgage that's covered by mortgage default insurance helps protect the lender by guaranteeing payments on the money they're lending out, particularly against any losses related to the borrower defaulting on their mortga...ge. With mortgage default insurance, you can get a mortgage for up to 95% of the purchase price of your home. The insurance premium is a percentage of your home’s purchase price and is determined by the size of your down payment. Most lenders will allow you to finance the cost of the premium into your mortgage, so you don't have to pay it up front. To learn more, send me a DM and we'll set up a call to review the best mortgage options for you and your family. See more

As an entrepreneur, you may not fit into the neat little boxes at the bank. No worries - I don't have boxes... I have SOLUTIONS! I work with self-employed Canadians regularly and understand the issues that keep you up at night. Your dreams for home ownership should not be one of them! The more complex your mortgage situation, the more sense it makes to find an experienced mortgage professional who can customize a mortgage to meet your short-term needs and your long-term... financial plan. Your home is a very important asset, so let's make the most of it! I'm able to advise you how you can improve your options and get the best possible rate - for instance, through documentation to prove income and/or employment, a great credit history, or a significant down payment. Most of all, I can help you stay focused on your business, alleviating the burden of many time-consuming and frustrating tasks associated with securing a mortgage. And of course, we'll also work around your hectic work schedule. You bring everything to your business - now it's time to reward yourself! Email me at [email protected] Let’s review your specific circumstances together and get you started on the path to home ownership.