Bank Payout Penalties: The math behind “how they get you!”
This is a great article with the perfect math example.
Remember, there is also the catch of the collateral charge by the big banks that makes it cost about $2500 to leave your bank when your term is up.
Graph shows why mortgage rates may go up soon
We watch all kinds of indicators for when mortgage rates may change.
This is the main one, the CMB – Canadian Mortgage Bond. As you can see it is on the way up and mortgage rates and the graph are directly related.
Alberta sky is not falling
The graph below shows the expected Alberta GDP growth rate for the end of 2015 and 2016. The numbers are still positive – just not as high as they were before.
If the Calgary to Edmonton corridor was a country it would have the 2nd highest growth rate in the world after China.
Calgary housing market a low overall risk of price delines
All the hot air about Calgary housing being over-valued looks to be hot air as CMHC’s report notes below.
Mark Herman, top Calgary Alberta Mortgage broker for renewals and new home purchases
Calgary housing market a low overall risk: CMHC
Mario Toneguzzi, Calgary Herald
Published on: April 30, 2015
Last Updated: April 30, 2015 5:59 PM MDT
Calgary is at a low risk of a housing correction, says Canada Mortgage and Housing Corp. in an assessment of market conditions across the country.
Canadian Reverse Mortgage – CHIP loans
Here is a great article on the CHIP loan or the Canadian Revers Mortgage. And we do these as well.
Mark Herman, Calgary Alberta mortgage broker.
Reverse mortgage.
Just hearing those words creates a visceral response among some who see it as a sinister product that drains fragile old people of their home equity.
Schedule of Increased Alberta Real Estate Fees
Here is a schedule of the actual increase in fees.
For my comments on what this all means see my last post here
Please contact me by phone at 403-681-4376 or my email at mark.herman@shaw.ca
Data:
- Increases are only for 5% down payment buyers.
- Clients who get submissions in prior to June 1st will be eligible for old premiums.
- Effective June 1st, (owner occupied 1 – 4 unit) mortgage loan insurance premiums will be:
| Loan-to-Value Ratio | Standard Premium (Current) |
Standard Premium (Effective June 1st, 2015 |
| Up to and including 65% | 0.60% | 0.60% |
| Up to and including 75% | 0.75% | 0.75% |
| Up to and including 80% | 1.25% | 1.25% |
| Up to and including 85% | 1.80% | 1.80% |
| Up to and including 90% | 2.40% | 2.40% |
| Up to and including 95% | 3.15% | 3.60% |
| 90.01% to 95% — Non-Traditional Down Payment | 3.35% | 3.85% |
All this from Mortgage Mark Herman, top Calgary Alberta mortgage broker for home purchases and mortgage renewals.
Newly increased fees for home buyers – comments
The new fees are not that big a deal. It will add a bit but not much. All the news is just noise by the press looking to turn out an easy article. Below are my comments that will be in the Calgary Sun this week.
Medical Doctor Mortgage Program – mortgage financing on your projected income!!
UPDATED!
ATTENTION soon-to-be-Doctors – FINALLY a program that acknowledges that you will be earing lots of money – soon, but not just yet.
Medical Doctors still in school or residency can qualify for financing with 20% down payment (up to 80% LTV) using projected income.
How the new math on LOC’s is calculated.
Below are how the banks now have to take your debts into account for doing the qualifying math for your purchase. A bit complicated and not intuitive at all!
Mark Herman, Top Calgary, Alberta mortgage broker for renewals.
Divorce and Mortgages
We do lots of mortgages for divorces – because they are complicated. Both people want to buy after or one buys out the other. BUT, you have to set the seperation agreement up correctly so this can happen.