Fall Home Prep!

General Kristen Vettraino 27 Sep

With Fall just around the corner, here are some of my favourite (and helpful!) home prep tips to help you be ready for the upcoming season.

Following these tips will ensure everything continues running well into the colder months!

Inspect Your Gutters: This time of year it is important to clean and inspect your gutters (replacing as needed) to ensure they are working properly as the rain and snow season hits. If they are clogged or damaged, it could result in a flooded interior and damaged exterior so don’t wait!

Check for Drafts: In the Fall and Winter, many homeowners are spending extra money heating their homes due to drafts, but it doesn’t have to be that way! Do a check on all exterior doors and windows to confirm if they are properly sealed. To do this, simply close a door or window on a strip of paper. If the paper slides easily, you need to update your weatherstripping.

Have Your Furnace Inspected: In Canada we are no strangers to chilly evenings! To ensure you are comfortable throughout the colder months, be sure to have your furnace inspected by an HVAC professional. They can check leaks, test efficiency, and change the filter. They can also conduct a carbon monoxide check to ensure air safety.
Don’t forget to change your filters quarterly, or even monthly if you have allergies.

Fix Any Concrete/Asphalt Cracks: This one is easy to ignore thinking it will be fine, but it could easily turn into a bigger issue. When water gets into existing cracks during the colder months it will freeze and expand, causing the crack to become even larger.

Turn Off Outdoor Plumbing: Since your garden will not need attention until the Spring, it is a good idea to shut off and drain all outdoor faucets and sprinkler systems. Depending on where you live, you might also want to cover them to prevent freezing during the Winter months.

Change Your Batteries: It is a good idea annually to check that all smoke detectors and carbon monoxide devices are working. While you’re doing your Fall and Winter home preparations, this is a good time to test your existing gadgets.

Understanding Mortgage Trigger Points

Latest News Kristen Vettraino 27 Sep

As we move into the Fall market, there are some important things you should be aware of.

While inflation has now likely peaked, we will still be dealing with the repercussions from these heightened levels for a while before things balance out. As inflation is corrected, we are also seeing home prices moving back to normal post-pandemic era.

However, we are still anticipating some final rate hikes from the Bank of Canada coming into the fall.

With that in mind, now is an important time to discuss what this means for your mortgage – specifically in regards to trigger points. Another increase in rates on the horizon will put many variable-rate borrowers near their mortgage trigger points – even for fixed payments.

While static payment variable-rate mortgages are not designed to fluctuate with prime, the reality is that a mortgage payment consistent of two components: your principle and your interest. With the existing rates and subsequent increases expected in the fall, the amount paid towards principle has decreased with an increase in the amount of interest on a static mortgage. For instance, if you are paying $2000 a month on your mortgage, only $200 might be going towards the principle with the rest covering interest. An additional increase to the interest rate, means that your interest portion will spike again and may actually exceed your total payment. When this occurs, it is called hitting your trigger rate.

You can calculate your own trigger rate with the following formula: (Payment amount X number of payments per year / balance owing) X 100) to get your trigger rate in percentage.

If you have reached your trigger rate, don’t panic. You are certainly not alone and there are options:

Adjust Your Payment: Firstly, you may choose to adjust your payment amount to ensure that you still have some going towards your principal balance.

Review Your Amortization Schedule: Consider switching your amortization schedule from 20-year to 25-year which would be ideal if you already have equity in your home. However, if you’re already at your maximum amortization for your lender (i.e. 30-year mortgage), you would need to increase your payment.

Switch to a Fixed-Rate Mortgage: Many borrowers are now choosing to opt for a fixed-rate mortgage to avoid the issue of increased interest and trigger rates. Keep in mind, depending on your mortgage product, you may face penalties if you switch your mortgage mid-term. Be sure to discuss any mortgage changes with me before going ahead.

Pay Off Your Mortgage: The final option that is always there is for you to pay off your mortgage entirely. Though don’t fret if this is not possible!

While I understand words like “inflation” and “trigger rates” can be scary, as your dedicated mortgage professional I am here for you. I would be happy to discuss any concerns you have or help explain in more detail how these changes may impact your mortgage and what your options are.

Mortgage=Death

General Kristen Vettraino 1 May

As a casual fan of semantics and etymology and I wanted to share a little background for the word and use of “Mortgage”.

I remember that during my initial mortgage licensing course, I found it interesting that mortgages were a way for regular folk (serfs, plebes, proles if you like) to obtain property for themselves and families without having been born under the privilege of wealth; as so few are.

Friends. So. Few. Are. I watch Downton Abby on a repeating cycle so I understand that property was a huge deal back in the day. I mean, it still is but we take it so much for granted now.
 

You can own land, a home of your own, without having the money to buy it. You have the opportunity to prove yourself responsible to pay for it over a time and someone will help you make it yours. The time it takes for you to pay it back is the amortization. Notice the “mort” (meaning: death) in that word.

The death part refers to when the loan agreement is paid, over, ended, dead.
Just to be sure I knew what I was talking about here I looked it up and found the following amusing phrase on wikipedia: “The word mortgage is derived from a “Law French” term used by English lawyers in the Middle Ages meaning “death pledge”.”

Classic Middle Age English Lawyers… so dark.

Currently in Canada we generally use 25 years as a length of time to agree to kill our home loans. Give or take depending on circumstances.

No one gives money away for free, mind you. But I myself find there are so many benefits to owning over renting and the expenses are comparable. So the daughter of a postal worker owns a little piece of Toronto thanks to a tidy little death pledge. And you can too. 🙂
 
Thus concludes our history/language lesson.

Dream. Build your empire. Good day to you all.

Credit Reports and You: Pedestrian Mortgage Advice for Novices, or Old Hats Who Secretly Don’t Know Sh*t

General Kristen Vettraino 24 Apr

“I think my credit should be good” “Actually, you have no credit.” “But I paid off all my cards and closed them.” “Uhuh.” – Actual conversation had by 80% of mortgage agents.

I’m trying not to start this with “you gotta have money to make money” but the urge is too strong. It’s true though and we all know it.

It’s the same with credit: you have to have it to get it.

Wait, wait. “Why do I need ID to get ID? If I had ID I wouldn’t need ID.” That’s better.

Same same.

The institution financing your mortgage doesn’t know you. Your credit report is your ID. Obviously having bad credit is bad. People who have bad credit usually know it. (Are your credit cards maxed? Do you neglect to pay the minimums every month? Do you forget to pay altogether? Is someone calling you to collect? Did you have a fight with Telus 3 years ago and you moved and you figured they gave up?) But also having no credit is bad. There’s no reference to your awesome handling of the monies.

If you don’t have any reported history of you making payments on time, of you being able to manage debt responsibly, then how is the institution potentially lending you 100s of thousands of dollars supposed to know if you’ll be good for it?

There are dozens of lenders of mortgage financing and most have multiple products which means generally a good mortgage agent can find a solution to a problem. That is to say, if you know you have bad or no credit, we can often make up for it in other ways and you could still get financing. Will you get the super lowest rates? Likely not. You’re considered a bigger risk so you have to pay more. Sometimes there are fees as well and sometimes they can be a lot.
So what can you do now to ensure you’re in the best position when it’s time for you to buy a home?
 

YOU HAVE TO TAKE SOME MONEY AND YOU HAVE TO PAY IT BACK.

Here are some tips for repairing or generating credit so that you look good on paper.

These are especially important for buyers putting down less than 20% for their down payment.
 
 

1. Two trade lines AT LEAST. I recommend a credit card and a line of credit. Most likely your bank is salivating to get you into these products. If they aren’t, I can help. An RSP loan is good too. (Fun fact: I recently got an exception for clients who had only one trade line each but we were able to show 12 months bank statements of rent coming out and they were still qualified as AAA and got the best rate. So, exceptions can be made in the right circumstance.)

2. Total amount of available credit should be no less than $2,500. 

3. Use your credit. Every month I use my credit card and then I pay it all off with my line of credit. I make payments toward my line of credit immediately afterward but if I chose to keep a balance on it at least the interest rate is much lower than my credit card.
So now I’m actively drawing from two trade lines and paying them back every month.
 

4. Don’t skip payments and don’t be late. We all know when we get paid, right? Find out when your bills are due and set a reminder on your phone. Then make your online transfers while you’re watching the Unbreakable Kimmy Schmidt.

5. Do not max out your credit. It reflects badly if your balances are all very close to or at or over your limits. STAY BELOW 75% OF YOUR LIMITS. (If you have a $10,000 line of credit, don’t use more than $7,500.)

 
6. Do this for two years and then keep doing it. “A” lenders like to see a two year history and they’re the ones you really want to impress.
 
Good luck friends!

Credit Reports and You: Pedestrian Mortgage Advice for Novices, or Old Hats Who Secretly Don’t Know Sh*t

General Kristen Vettraino 24 Apr

“I think my credit should be good” “Actually, you have no credit.” “But I paid off all my cards and closed them.” “Uhuh.” – Actual conversation had by 80% of mortgage agents.

I’m trying not to start this with “you gotta have money to make money” but the urge is too strong. It’s true though and we all know it.

It’s the same with credit: you have to have it to get it.

Wait, wait. “Why do I need ID to get ID? If I had ID I wouldn’t need ID.” That’s better.

Same same.

The institution financing your mortgage doesn’t know you. Your credit report is your ID. Obviously having bad credit is bad. People who have bad credit usually know it. (Are your credit cards maxed? Do you neglect to pay the minimums every month? Do you forget to pay altogether? Is someone calling you to collect? Did you have a fight with Telus 3 years ago and you moved and you figured they gave up?) But also having no credit is bad. There’s no reference to your awesome handling of the monies.

If you don’t have any reported history of you making payments on time, of you being able to manage debt responsibly, then how is the institution potentially lending you 100s of thousands of dollars supposed to know if you’ll be good for it?

There are dozens of lenders of mortgage financing and most have multiple products which means generally a good mortgage agent can find a solution to a problem. That is to say, if you know you have bad or no credit, we can often make up for it in other ways and you could still get financing. Will you get the super lowest rates? Likely not. You’re considered a bigger risk so you have to pay more. Sometimes there are fees as well and sometimes they can be a lot.
So what can you do now to ensure you’re in the best position when it’s time for you to buy a home?
 

YOU HAVE TO TAKE SOME MONEY AND YOU HAVE TO PAY IT BACK.

Here are some tips for repairing or generating credit so that you look good on paper.

These are especially important for buyers putting down less than 20% for their down payment.
 
 

1. Two trade lines AT LEAST. I recommend a credit card and a line of credit. Most likely your bank is salivating to get you into these products. If they aren’t, I can help. An RSP loan is good too. (Fun fact: I recently got an exception for clients who had only one trade line each but we were able to show 12 months bank statements of rent coming out and they were still qualified as AAA and got the best rate. So, exceptions can be made in the right circumstance.)

2. Total amount of available credit should be no less than $2,500. 

3. Use your credit. Every month I use my credit card and then I pay it all off with my line of credit. I make payments toward my line of credit immediately afterward but if I chose to keep a balance on it at least the interest rate is much lower than my credit card.
So now I’m actively drawing from two trade lines and paying them back every month.
 

4. Don’t skip payments and don’t be late. We all know when we get paid, right? Find out when your bills are due and set a reminder on your phone. Then make your online transfers while you’re watching the Unbreakable Kimmy Schmidt.

5. Do not max out your credit. It reflects badly if your balances are all very close to or at or over your limits. STAY BELOW 75% OF YOUR LIMITS. (If you have a $10,000 line of credit, don’t use more than $7,500.)

 
6. Do this for two years and then keep doing it. “A” lenders like to see a two year history and they’re the ones you really want to impress.
 
Good luck friends!

Analyzing BMO’s Go-Fixed Advice

General Kristen Vettraino 25 Mar

“Some argue that the “best” mortgage strategy is picking the lowest possible rate, every time. That’s a horrible plan if the mortgages you pick have prepayment and refinance restrictions that cost you more than the rate savings. But assuming you chose reasonably flexible mortgages, this strategy would have served you well the majority of the time throughout history….”


http://www.canadianmortgagetrends.com/canadian_mortgage_trends/2014/03/analyzing-bmos-go-fixed-advice.html#more

September is the start of something new!

General Kristen Vettraino 4 Sep

The first weeks of fall often seem more like a new year than the beginning of January does. This year’s events are certainly solidifying that notion for me. 

I’m so very pleased to announce that I am embarking on a new career as a Mortgage Agent. Having completed a certification course earlier this year, I have joined Canada’s top Mortgage Company, Dominion Lending, and am licensed and ready to start helping people get financing for their homes!

I’m currently working with a mentor and am backed by a professional team so even though I’m a rookie I’ll be able to help you get the best deal suited for your needs. 

If this seems like a far cry from teaching yoga, it is and it isn’t. I was approached by a devoted student of my classes (an industry professional) who explained to me that the job of a mortgage agent requires that I help clients, listen to their needs and explain things to them so they can understand and make informed decisions. It is already my job to listen, help and explain as I teach and now I have an opportunity to do it in another way. 

It actually wasn’t hard for him to convince me of something I otherwise never would have imagined for myself in a million years. Especially after just having dealt with a mortgage agent for the first time. Our real estate agent had recommended to my husband and I that we meet with her. There were many reasons I was glad we hadn’t just gone to a bank. And I was amazed that this service came at no cost to us. She clarified our requirements and gave us hope and clear goals. I’m looking forward to being that person for many people in the future. 

My work begins now as I try to make contact with potential clients. Please let me know if you are in need of my services and feel free to pass on my information to friends and family. Referrals are going to be the key to my success. 

Wish me luck on my new path.

🙂