100% Mortgage Financing after Bankruptcy

Put the Past in its Place: How to Get 100% Mortgage Financing after Bankruptcy

By Grant Powell as seen in Vancouver View October 2006

Going through bankruptcy has been a topic of confusion and concern for people who are thinking of purchasing or already own a home. There are two overstated myths concerning bankruptcy and home ownership. The first is that once you’ve claimed bankruptcy, it’s almost impossible to get another chance to purchase a mortgage for at least seven years after the completetion of the bankruptcy process. The second is that if you currently own your own home, once you have filed bankruptcy you will have to give up procession of that asset. Both these myths are false.

The truth is that within two years of being discharged from bankruptcy, you can indeed get 100 % financing for an approved mortgage. The best way to start in this rebuilding process is to get back to building your credit as soon as you have been discharged from the bankruptcy. I have worked with many clients who have gone through bankruptcy and cut up all their cards, and now only pay in cash. However, that philosophy doesn’t work in today’s society if you are looking to move toward owning your own home and building your net worth.

There are mortgage lenders who will give you another chance, provided that you are building credit with very few flaws this time around. The best way is to start small by getting a loan or credit card and diligently working away at increasing your credit limit. For example, use the credit cards every month and pay them off on time. By paying your credit card on time for a few months, the financial institution will likely offer to raise your credit limit. The trick is to keep doing this until you get a credit limit of at least $1,500. The reason for this is that the minimum credit any mortgage lender will want to see is at least twelve months of reestablished credit, with one loan or credit card with a minimum of $1,500 credit in good standing for a few months. The simple reason for this is that mortgage lenders want to make sure you are now able to keep regular spending habits before they lend you hundreds of thousands of dollars. The best advice is to realize your own particular present situation and work away at bringing about the result you wish to accomplish.

For more information on building credit, see my January 2006 Vancouver View Article

Grant Powell is a mortgage expert with Dominion Lending Center in the Yaletown and Kitsilano areas. If you have question or concerns about an existing mortgage or are looking to qualify for a new mortgage visit www.grantpowell.ca.

Become the Next Donald Trump

How to become the next Donald Trump without using your own money

 By Grant Powell as seen in the Vancouver View Magazine May 2007

 

There is one amazing statistic definitely worth taking in if one is looking to become financially independent. Seven out of ten millionaires get there start from purchasing real estate. The beauty of this is that borrowing money for a mortgage keeps becoming easier and easier in Canada, now that you can purchase an investment property for as little as 10% down while receiving discount interest rates. This has opened the floodgates for so many people motivated to become the next Donald Trump.

This new 10% down product is ideal for those homeowners who have equity existing in their principal residence or of course, have the 10% down in assets in cash or can liquidate.  If you own a home that has built up equity over the last few years, you can pull out funds that are sitting in your own place of residence and use them towards the down payment and all closing costs that will be incurred from your new investment purchase.

This can be done in the same way as a refinance or “Debt Free in 10 Days” article I wrote about in the January 2007 issue in Vancouver View Magazine in which funds were pulled out to take care of high interest debts that typically can eat up ones net worth. I have clients that use this program for purchasing a variety of different types of property in and around the local Vancouver market as well as throughout Canada in which they, along with their realtor, think have strong value and investment potential over next few years. The types of property that can qualify are detached homes or semi detached, condos or up to four unit complexes, new or existing properties all units need to be self contained. The amortization ( the length of time to pay off mortgage) can also be up to forty years. Of course, this helps keep your monthly bottom line down but one can make extra payments per month, as well as lump sum payments annually. Fully discounted wholesale interest rates, adjustable as well as fixed term interest rates are in the cards as well.  All this can be done with only average credit. For more information contact Grant Powell at www.grantpowell.ca

One Day Mortgage Qualification

Pre-Qualify for a Mortgage in one bay before shopping for a Property

 

By Grant Powell as seen in the Vancouver View Magazine February 2007

 

It is human nature when shopping to look at any product you are excited about purchasing first, then deciding second if you have the resources to truly purchase it. That thought process is no different when it comes to purchasing real estate. First many go window shopping for a home with the hopes and dreams of what they would like to purchase.  Second, when they come across something they start to get emotionally attached to they often forget to think if they can truly afford the purchase.  Third, they then call there realtor or go to view the property on there own  to further the excitement.  Fourth, then people usually realize on their own or told by their mortgage expert or bank what the monthly payments are, and people realize that the home they have been looking at may be out of reach. It is very common to emotionally shop first, and then create the excitement,  but often it ends up wasting not only your own time, but all realtor’s and home owners involved.

 

….many go window shopping for a home with the hopes and dreams of what they would like to purchase

There is a very simple way to escape this emotional trap when shopping for a home by first getting a Mortgage Pre-approval. If you are looking at purchasing in the next while or even if  you are simply window shopping for a home for  knowing what your purchasing power is, is very important information to attain before you start your home search. The Mortgage Pre-Approval is always free and in most cases, getting a Mortgage Pre-approval by a Financial Institution or Mortgage Expert should take no longer than a day. The mortgage professionals will be very helpful in preparing you for your first steps in the home purchasing process.

1)  Help you find out the maximum mortgage amount your income will qualify for

2) Help you realize the amount of down payment  you may have access to

3) Help you  find the maximum monthly payments you are comfortable with.  It is also an appropriate when talking to a mortgage expert to see if there are any other mortgage options you may not be familiar with that can make more sense for your situation. Knowing these parameters will help in solidify your purchase power. The process of putting in an offer on a property, then wanting to remove subjects and putting in the deposit can be very stressful for you and your realtor.

Therefore, getting a Mortgage Pre-approval and being prepared for these steps will truly help anyone shopping for a home shop with confidence and not incur unneccessary stress. He is a mortgage expert with Dominion Lending Center, with an office in Yaletown. If you have questions about this topic or any other mortgage related questions please visit  Grant Powell at www.grantpowell.ca.

 

Pre-Qualify for a Mortgage in one bay before shopping It is human nature when shopping to look at any product you are excited about purchasing first, then deciding second if you have the resources to truly purchase it. That thought process is no different when it comes to purchasing real estate. First many go window shopping for a home with the hopes and dreams of what they would like to purchase. Second, when they come across something they start to get emotionally attached to they often forget to think if they can truly afford the purchase. Third, they then call there realtor or go to view the property on there own to further the excitement. Fourth, then people usually realize on their own or told by their mortgage expert or bank what the monthly payments are, and people realize that the home they have been looking at may be out of reach. It is very common to emotionally shop first, and then create the excitement, but often it ends up wasting not only your own time, but all realtor’s and home owners involved. ….many go window shopping for a home with the hopes and dreams of what they would like to purchase There is a very simple way to escape this emotional trap when shopping for a home by first getting a Mortgage Pre-approval. If you are looking at purchasing in the next while or even if you are simply window shopping for a home for now knowing what your purchasing power is is very important information to attain before you start your home search. The Mortgage Pre-approval is always free and In most cases getting a Mortgage Pre-approval by a Financial Institution or Mortgage Expert should take no longer than a day. The mortgage professionals will be very helpful in preparing you for your first steps in the home purchasing process which are. 1) Help you find out the maximum mortgage amount your income will qualify for 2) Help you realize the amount of down payment you may have access to 3) Help you find the maximum monthly payments you are comfortable with. This is also an appropriate time especially if you are talking with a mortgage expert to see if there are any other mortgage options you may not be familiar with that may make more sense for your situation. Knowing these previous points will help in solidifing your purchasing power. The process of putting in an offer on a property, then wanting to remove subjects and further putting in the deposit can be very stressful for yourself and your realtor. So getting a Mortgage Pre-approval first and being prepared for these steps will truly help anyone shopping for a home shop with confidence and not have to occur unwanted stress. Grant Powell is a true local, born in the heart of this beautiful city. He is a mortgage expert with Dominion Lending Center, with an office in Yaletown. If you have questions about this topic or any other mortgage related questions please contact him at grant@viewmagazine.ca or visit www.grantpowell.ca.

When is the Right time to Purchase Real Estate?

When is the right time purchase Real Estate?

By Grant Powell as seen in the Vancouver View November 2006

Undoubtedly, you’ve heard someone say: “I wish I had 20/20 vision when it comes purchasing investments such as real estate”.

The truth is, no one has a crystal ball. We all have to live somewhere, so why wait year after year until you come up with a prediction of the right time to take the plunge? There is no such thing as the “right time” to purchase a home—if there were, everyone would have foreseen the trend and bought property over three years ago. In so many ways, we are privileged to live and work in such a beautiful part of the world. With this in mind, understand that there are some drawbacks. For instance, there have been people over the years who have moved from across Canada and around the world to Vancouver and the surrounding areas. This influx, according to many economists, will continue to increase. Recently, the media have reported cases in which renters have been forced out of their units. This also seems to be a growing trend. This is due in part to landlords reviewing their best options that include spending money on endless and ongoing renovations to an older building, and selling the valuable land to a developer, walking away with millions of dollars in their pockets. Many landlords are taking the second option. It looks as if this way of thinking may be here to stay.

As time moves on, it’s nice to know that we are able to create a sense of security, stability, and consistency. When purchasing a home, you have control of such things as well as changing décor and landscaping, and being able to increase assets. One of the greatest ways to increase asset value year after year is to own your residence. The biggest question to ask yourself is where you want to live, and how you want to live your life. The differences between renting and owning a home are huge. There’s a long list of pros and cons, but no one right decision. Home ownership depends on whether you are ready financially and emotionally to take the leap of faith to harness more financial freedom.

First, when it comes to purchasing a home, no matter what size, you’ll discover mortgage payments and other related costs such as property taxes, repairs, and maintenance; and if you have a condo, the strata fees usually make monthly payments a bit higher than rental payments. Your ability to afford a home can be gauged very simply: do your mortgage payments and ownership costs plus all other debts add up to more than 40 percent of your gross monthly income? A few mortgage lenders that exclusively deal with mortgage brokers only will allow up to 50 percent of your gross monthly income for that same calculation, if you wish. After all, you still need to pay for food, clothing, transportation, and living expenses, not to mention vacations and other leisure activities. The right steps should truly come from thinking over your best options, as well as getting professional advice in coming up with a great homeownership budget decision.

Second, buying a home isn’t just about money. Sometimes you have to follow your heart. Even if you want freedom to move to different areas in the city or country, or are planning to go back to school and change careers, or if there are blemishes on your credit, there is a mortgage that can suit your needs.

Grant Powell is a true local, born in the heart of this beautiful city. He is a mortgage expert with Dominion Lending Center with offices in Yaletown and Kitsilano. If you have question or concerns about an existing mortgage or are looking to qualify for a new mortgage, contact him at www.grantpowell.ca.

Debt Free in 10 Days

Debt free in 10 days

By Grant Powell as seen in Vancouver View Magazine January 2007

January is traditionally the time of year when we tend to regroup and set new goals for the coming year. For most, the popular type of goals tend to be exercise more, lose weight, improve one’s financial situation, maintain strong relationships between family and friends, attain new positions in employment and so on. As for finances, I wrote an article in the Vancouver View last December on “The Power Of Equity.” In 2004 Consumer Reports showed Canadians charged almost $170 billion on credit cards. Well guess what? In 2005 it was up another $20 billion to over $190 billion and predictions for 2006 are higher yet. With this being the case, many Canadians would love to start their 2007 financial year in a much stronger position.
The good news is, that if you have owned property in the Vancouver area for over two years you will have the power to pull equity from your home to make your financial situation stronger. If you own a home you should never, absolutely never, be paying more than one or two percent above bank prime on any money you borrow. As of December 1 bank prime is six percent.
For instance, owing money on a mortgage at 5.10 percent interest is much wiser than owing thousands on credit card debt at 18 – 30 percent interest. A very easy way to evaluate your situation is:
1) If you have any high interest credit card debt that you carry month to month –  pay it off.
2) If you have no interest or no payment items from department stores coming due it is wise to pay them off before they come active and charge additional administration fees. If you realistically can’t pay things off before getting dinged it is definitely time to look at refinancing.

The refinancing process on a property can be done very quickly and easily –  typically within 10 business days. The proceeds of your refinancing all your high interest debts will be paid out first, and the remaining amount of funds will go straight into a bank account of your choice. This process not only gives you a stronger hold on your finances, it also saves your credit rating. When carrying heavy debt on your credit cards from month to month you will lose points on your credit score, which, if done for too long you may no longer have the power to get the lowest interest rate on loans in the future until that credit rating is strategically rejuvenated. As you are going through this process, I strongly suggest asking tips to further strengthen your credit and financial situation. For more information  contact Grant  Powell at www.grantpowell.ca

 

 

Buying Property through an Assignment of Purchase

Assignments are a Hot Purchase!

By Grant Powell – as seen in Vancouver View Magazine July 2006

When it comes time to purchase a home, you have many options. Age, style, location, and state of development are some of the things that play a big role in the process of determining home-owning goals. For instance, some buy renovated homes, some buy older homes with intentions of renovating them in the near future, and some find it ideal to handpick their exact floors as well as a floor plan. This last group welcomes the thought of taking possession down the road, even two or more years in the future.

One type of home-shopping that is quickly gaining popularity has clients combing through their desired neighborhoods. It is called purchases by assignment. This kind of home shopping is very beneficial because clients are getting specifically what they want, the home is brand-new, and in some cases they are able to take possession within a couple of weeks, while still realizing a discount on the completed purchase price.

An assignment of purchase and sale is different from a typical real estate sale because the purchaser of the assignment doesn’t take physical possession until after the new development has been issued an occupancy permit from the city. How this works is as follows: upon the developers’ written consent, the original purchaser sells or transfers to the new buyer all the contractual rights and obligations, including terms, deposits, included items, completion date etc. of the original agreement of sale contract that was drawn up between the original purchaser and the developer. This happens before the official completion date for the new property. Until completion of the development, the developer is the legal owner of the interest in the real property until such time as there has been a legal land title transfer. This legal land title transfer is given to all the new purchasers of the development once the Developer gets all the required occupancy permits from the city.

Not all mortgage lenders will do mortgages on assignments. With this being the case, there are still some financial institutions that will give better deals on financing than others. It is worthwhile talking to a mortgage professional to help you get the best financing for your assignment purchase.

Grant Powell is a true local, born in the heart of this beautiful city. He is a mortgage expert in Yaletown with Meridian Mortgage Center. For a mortgage health check or more information on purchasing or refinancing a home, visit www.grantpowell.ca 

40 Year Amortization Mortgages

40 Year Amortization Mortgages –

(More Ways to Increase Your Home-Buying Power)

By Grant Powell

There is a common challenge today that most home buyers are faced with when looking to purchase a home. It seems that everything they like is just over the price range they are told they can afford.

“As home prices continue to escalate, there is the need for more flexible payment options to make the dream of home ownership a reality for more Canadians,” said Peter Vukanovich, president of Genworth Financial Canada.

As I wrote in “Buying Power: Choosing the Mortgage that is Right for You” (Vancouver View, May 2006), because of demand, mortgage insurers in this country announced that they were extending the standard of twenty-five-year mortgage amortization in Canada to thirty and thirty-five years. This change was embraced with open arms; in fact, six months later, one-fourth of all new mortgages have been based on these longer available amortization options. This fall, another milestone in mortgage lending has occurred. Genworth, an industry leader that supplies mortgage insurance to homeowners in Canada and twenty-three other countries around the world, has again redefined the standards. As of October 10, Genworth is now offering a forty-year amortized mortgage. This extended amortization further reduces a borrower’s monthly payment. This of course allows more buyers to afford homes of their own and increase their choice of properties by extending their price ranges. A quick example: a $200,000 mortgage with twenty-five-year amortization at six percent monthly payments would be $1,280. The same mortgage over a forty-year amortization would be $1,090, which is a savings of $190 a month. Since this announcement of the forty-year amortization, I have adjusted several clients’ maximum mortgage preapproval amount to new highs. Along with the longer amortization, there are a couple of mortgage lenders that will also allow a higher percentage of a client’s overall debt to go toward monthly mortgage payments. By using these two methods to help fine-tune the numbers, I have substantially helped to increase several clients’ home-buying power. For example, a client who was previously preapproved to a maximum purchase price of $200,000 was struggling to find a suitable place. We readjusted the numbers, and the client was able to requalify and purchase a property he was really happy with for $234,000.

Grant Powell is a true local, born in the heart of this beautiful city. He is a mortgage expert with Dominion Lending Center, with an office in Yaletown. If you have questions about an existing mortgage or are looking to qualify for a new mortgage, contact him at www.grantpowell.ca.

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