This is not a new subject – if you have been speaking with me,
you can hear the frustration in my voice. As a mortgage
broker but also a tax-paying citizen, I am frustrated, because the
government is impacting my ability to live comfortably and afford
the lifestyle I and you pay for, through our… Continue reading →
The post Mortgage Rules Will Change Again – How Will They
Impact Your Ability To Qualify? appeared first on Aminas
This is not a new subject – if you have been speaking with me, you can hear the frustration in my voice. As a mortgage broker but also a tax-paying citizen, I am frustrated, because the government is impacting my ability to live comfortably and afford the lifestyle I and you pay for, through our taxes. Home ownership has become a privilege rather than a right in this country and that is a huge shame! October 2016, we saw a shake-up to the industry when the government first started playing with the rules. Through the guise of controlling foreign buyers, it did nothing to impact them, however it definitely impacted us in our buying power and in some cases by 20%. Now looking forward, that will be further impacted again in January, 2018. Regardless if we put 20% down or not, we now have to qualify at the qualifying rate (currently 4.89% + 2%), which...
Whether you are a resident of Canada or even a non-resident
(living and working abroad), you are probably wondering how to keep
purchasing and/or refinancing when the mortgage rules keep changing
like the wind! Since last October, we have seen massive changes –
everything from increased rates, properties that were previously
insured are now uninsured… Continue reading →
The post How To Purchase When The Mortgage Rules Keep
Changing? appeared first on Aminas Mortgage
Whether you are a resident of Canada or even a non-resident (living and working abroad), you are probably wondering how to keep purchasing and/or refinancing when the mortgage rules keep changing like the wind! Since last October, we have seen massive changes – everything from increased rates, properties that were previously insured are now uninsured and the qualifying rate for everything under the 5-year fixed has risen three times. So with these massive changes how do you keep up? How do you purchase when the mortgage rules keep changing? As brokers, we deal with these frustrations every day and the answer unfortunately is not clear! To give you an idea, a new couple with a baby were purchasing a pre-construction property that they originally bought 5 years ago. When they first signed on the dotted line, rates were in the low 2’s and nobody thought they...
How effective is your marketing? Until you start this important element of your business, your business will not really be started… The key fundamental element in the first level of your real estate investing business is creating systematic and consistent lead generation. Have you focused on that yet? If not, you do NOT have a business, you have a hobby or a dream. Your commitment to this area of your investing career is critical to your success. There are many different ways to create leads. Here are about 100: Accountants and CA Firms: They have clients with financial problems where an investor can be of help. Advertising: Never stop. Use simple ads with a USP, Unique Selling Proposition: Quick Closing, All Cash etc., Buy Houses Ads, Newspapers, Flyers. ...
DCR or debt coverage ratio, is one if not the most important thing to factor when it comes to commercial financing. However, it is one of the most overlooked aspects so I thought I would touch upon it’s importance here. Last month, I closed on a very difficult commercial deal – a 12-plex in Orlando, FL. When looking at it initially the numbers looked strong and keep in mind at first glance they always will as they are put together by the realtor to get it sold. It is not until I as the broker or the lender do further due diligence with proper numbers, backed up by P/L and rent rolls, that the true numbers come out in the wash. On this deal, the current seller had only owned the property for 18 months, having bought it with two other bigger buildings in a bulk purchase. Being the smaller...
Many investors have been looking at their current residential portfolio’s and not liking what they are seeing. For instance, the recent rule changes have affected their ability to grow their single-family portfolio’s with CMHC no longer insuring these properties, which means less lenders to choose from. Furthermore, after the recent rate hikes and more to come, cash flows have also been affected. So with that in mind and with many investors now looking at commercial property acquisitions, let’s take a look at the commercial property market trends for the rest of 2017. Deloitte has provided a great outlook for 2017, which is a great read and you can get it here Hello, I'm Amina Mohamed. I am a Mortgage Agent and Real Estate Investor who believes in helping both clients and investors by looking at all of their mortgage options. With a strong belief that mortgages...
Recently James, a non-resident from Singapore purchased a property in Toronto. We completed the deal from start to finish in 10 days, which was highly stressful for both the borrower, realtor and mortgage broker – yours truly. Everyday, I was faced with lender delays, appraisal delays’ and many phone calls back and forth to verify details. It was not clear that we would be able to close and both James and the seller could not extend closing, which led to further stress. James was leaving back to Singapore on July 29th and the sellers were closing on another property on July 30th. Our closing was set for July 27th. Deadlines all around were tight. The only positive was that the realtor already had the status certificate reviewed by the lawyer, before the purchase agreement was signed, which saved us time in the process, enabling me to send that in with the paperwork to the lender....
Everyday, I open up my inbox and I see countless messages or
promotions from Private Lenders – both individual’s and
institutional privates, seeking to compete in this ever-changing
mortgage landscape. Gone are the days, you could call a private
lender and ask them to fund your client’s troubled file. Now
they are also requiring more… Continue reading →
The post Private Lenders Are Feeling The Squeeze Too!
appeared first on Aminas Mortgage Services.
Everyday, I open up my inbox and I see countless messages or promotions from Private Lenders – both individual’s and institutional privates, seeking to compete in this ever-changing mortgage landscape. Gone are the days, you could call a private lender and ask them to fund your client’s troubled file. Now they are also requiring more paperwork (even when they say they don’t) and their rates and fees are getting higher and higher! Private Lenders are feeling the squeeze too! Why is this? For one the market cannot rebound or absorb the over-inflated numbers we were seeing from the last two years. For instance, clients who were over-bidding on properties and in some cases paying over $100,000 to get into that property are now looking for a way out. However, they are in negative equity situations, which means they are stuck with the their current lending options or selling at a loss...
As a mortgage broker the worst question to get asked is “what’s the best rate you can get me?” When you shop for rate alone, you are unfortunately missing the bigger picture! Let’s look at why this makes a difference when purchasing property in Canada and the US. When you buy in Canada rate might be a good focus for you, because there are so many lenders competing on rate alone and with the high property prices rate is the main focus, because it indicates in many cases whether we can cash flow or not. However, aside from rate is the type of rate (variable or fixed) and the term you choose. For instance, In Canada if you are a Rent to Own investor, you want to get a 3-year fixed or 5-year variable not a 5-year fixed....
Guest Post by Yvette Barnes, Real Estate Salesperson at Right at Home Realty We’ve heard a lot since the Federal and Provincial governments weighed in on the GTA housing market. Has the market cooled? It depends. Prices soared last November because there were no listings. This April revealed 21,600 new (‘active’) listings – 33.6% more than April 2016. Our ‘active’ listing supply is 3% higher than this time last year. The May statistics verify new listings are about 47% more than the same period in 2016. In 2017, TREB reports a year-over-year growth of 20-25%; March was at 30%. This suggests the market has returned approximately 5% of the price increases gained. Rent Control applies to all residential units effective April 20, 2017 and will have a considerable effect on landlords and tenants alike. Temporarily, tenants feel protected knowing rent increases are controlled (now 1.5% per year). Over...
As the summer approaches, I start to get inquiries from Canadian non-resident or expat clients, inquiring about how to purchase properties in Canada. Many of these clients are Canadian citizens but they are working and living abroad in countries, such as, Dubai, Singapore, Abu Dhabi and England just to name a few countries. Canada, luckily enough is very favourable to foreign investment, and while these clients are not considered foreigners, once they live outside the country for a number of years, and no longer pay taxes at home, they are not considered citizens and thus do not enjoy the same financing benefits for residents of Canada. Thus, I thought a good primer would be good. Let’s look at a recent example. Jenny and John, have been living in Singapore for the last 3 years both teaching at the international school. They receive a tax-free income and don’t pay...
This is not my typical mortgage article but was important for me
to write so I hope you like it! As a self-employed entrepreneur and
solo mortgage broker, it can get lonely and difficult in this
business and having only been doing this for 3.5 years, I have had
my days when I wanted to… Continue reading →
The post The Government Stole My Mojo….But I Got It
Back! appeared first on Aminas Mortgage