1 May

Mortgage=Death

General

Posted by: Kristen Vettraino

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.

24 Apr

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

General

Posted by: Kristen Vettraino

“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!
24 Apr

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

General

Posted by: Kristen Vettraino

“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!
25 Mar

Analyzing BMO’s Go-Fixed Advice

General

Posted by: Kristen Vettraino

“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

4 Sep

September is the start of something new!

General

Posted by: Kristen Vettraino

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.

🙂