Thursday’s Mortgage Weekly April 4th
Thursday crept up on me quickly! I think the kids being on spring break and the Easter long weekend had a part in this. But alas, I am keeping to my word, so here is the Thursday weekly.
This week it’s a short one! Today we have a bit of news on rates, a new review for yours truly, and some of the most asked questions we are receiving right now.
Top asked questions these days regarding mortgage qualifying:
QUESTION: If I am selling a property in order to purchase another, do I have to sell first? Or is bridge financing available if we need it?
ANSWER: This all depends on how much equity you have in the property you’re selling. If the property has lots of equity in it, and enough equity for an equity take out (in the case where you DONT sell your house by the time you have to take possession of the new home).
QUESTION: I am purchasing a property with a suite. How does that affect the mortgage qualifying?
ANSWER: Again, it depends. Most lenders will use a 50% addback to gross income calculation when factoring in suite income, which in reality, does not change qualifying debt servicing ratios too much.
If the mortgage is insured, the lender can use a 100% addback of suite income.
In some very select situations, some select lenders will use an 80% offset of suite income, which does in fact help debt servicing ratios quite a lot. This is very rare though and the calculation is used at the lender’s discretion.
Also, some lenders are requiring suites to be legal suites for rental income usage.
More questions and answers next week! If you have specific questions, please don’t hesitate to call 2508587160 or reply to this email. I am happy to help!
Interest Rate Update:
Fixed rates actually crept up a little in this past week. While we expect fixed rates to continue their general decline, nothing ever happens in a straight line. Or, I should say, when rates are coming down, there are always short upward blips, even though the rate is trending down.
Really, slight variations in fixed rates will happen week to week.
Any of our clients that are purchasing in May or June will have a rate held by our firm upon approval. For fixed rate holds, if the rate goes up between the approval date and the closing date, their fixed rate they have currently is secured. If the rate goes down, we usually have one chance for the approved lender to re-price the mortgage, about 2 weeks before the closing date. That means, the lender will give us a new rate that is more competitive with the market, if in fact rates have fallen in that time.
Lots can happen in two months, or nothing may happen. Either way, we have the situation covered.
Here are those suggested rate ranges as of today:
3 year fixed – Between 5.11% and 5.50%
5 year fixed – Between 4.99% and 5.45%
5 year variable – Between 6.14% and 6.80%
INTEREST RATE EXPLANATION:
These days, there are many various types of mortgage transactions which come with different rate offerings. Your rate will depend on various factors and qualifications.
This type of rate environment makes it difficult for us to post any sort of rate sheet. Rates are also changing far too frequently. It’s a moving target on any specific day!
To add, the banks are becoming more aggressive in rate pricing, but only after they evaluate and approve the mortgage. Once the deal is approved at a bank lender, a “negotiation” of sorts can start.
So I’m moving towards trying something different and just posting suggested ranges of rates. Ultimately, I’m going to say: Call us or email us to get your individual rate quote!
Pricing for rental properties is different and will vary from lender to lender. The above rates are for principal residential mortgages only.
15 Minute Rate Quotes. It’s that fast!
During the 15 minute call, we talk about:
-Your financial situation, and what you are looking for
-What mortgage options you’ll have based on your situation, and
-Specific rate quotes
All this in 15 minutes!
So pick up the phone and get clarity yourself. And if you have friends or family that need a good dose of clarity, pass on my number. 250-858-7160.
I’m IN the Office! Come say hello or let’s book a coffee.
After some time working out of my home office, I’ve decided it’s time to get back into a more central work location, and to make myself more accessible to, well, everyone!
Come and say hello, or let’s book a coffee!
Where? For now, I’m at the Uptown Spaces location, right behind Best Buy. Parking is easy, and it’s generally easy to find.
Uptown Spaces – Suite 301-3450 Uptown Blvd.
There’s so many things happening in the real estate and mortgage industry. As always, I want to ensure you – my clients, colleagues, and friends, feel welcome to call me up, email me, and now, come and see me in person. Whether we’re talking business, your mortgage, or anything else, I’d love to see you.
I’m back to the office!
We just surpassed 300 reviews!
Here’s One For Yours Truly!
“Olympic Mortgage, and specifically David Steinberg, is highly recommended. He found me a great mortgage in 2019 and 5 years later, back for a look at renewal options, he scoured the planet, I am sure, looking for exactly what I was asking for. Thank you David, and Darla, for the hard work I put you through this year! See you in 3 years!”
Says GN on google.