Mortgage Broker VS Banker| Kelowna Mortgages

Mortgage Broker VS Banker| Kelowna Mortgages

Ever feel overwhelmed with the process of getting a mortgage? Ever feel like no one is taking the time to explain the fine print? Ever feel confused as to whether to use a mortgage broker or your bank? I can help! I have worked for a local credit union and a chartered bank over a period of 10 years. So I know first-hand the difference between a broker and a banker. A mortgage broker works for you for FREE and has access to over 50 lenders. This means a mortgage broker does all the shopping around so you don’t have to. As a broker, I use my knowledge and experience to negotiate the best rate and product possible that will suit your needs.

The bank has access to one lender, them! They can only sell you their product, whether it’s truly right for you or not. A broker only gets paid (from the lender) if they get you a mortgage. When you see a bank representative, that mortgage negotiating is typically left up to you and they are paid a salary regardless of the outcome. However, that negotiating is limited as banks are not flexible on their rates and can’t sell a product they don’t have. I love that as a broker I can take the time to explain the process. I do the leg work so you don’t have to, making the process as stress free as possible. I explain the fine print and what it actually means to you.

I lay out your options and let you decide which mortgage plan will suit your needs best. I work with you and for you. The bank works for them. When I saw these differences, it was clear to me I needed to make a career change. Don’t get me wrong; I’m not slamming the financial institutions. But when it comes to truly getting you the best rate, the best product, saving you money on your monthly payment and possible payout penalties, using a mortgage broker is the only way to go. Another difference between mortgage brokers and banks is that in BC, mortgage brokers must be licensed and are subject to a strict set of requirements. Accredited Mortgage Professionals (AMP) must take continuing education courses in order to maintain their accreditation. Bank Representatives are not licensed and require no formal training. Who would you rather have work for you to help you create the perfect mortgage plan?

Looking to make life easier come approval time? Here are some tips of what to bring to your first meeting to help speed up your approval:

  1. Last 2 years Notice of Assessment (NOA) and T1 (Tax return) if you are self-employed, the last 3 years
  2. Current pay stub
  3. Current employment letter outlining your start date, position, wage and hours.
  4. Existing mortgage details, if you own your home already

If you have any questions, I would be happy to answer them. No obligations.

Get your commitment free mortgage review today!

KRISTY TOWSON  Call or Text  778-215-4334 

www.ktmortgagebroker.com

kristy@lendingmax.ca

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Realtor Andrew Smith
Living in Kelowna,
Andrew Smith
Royal LePage Kelowna
1-1890 Cooper Rd, Kelowna, BC V1Y 8B7
250-979-8066 or Toll Free 1-877-330-5884
Follow me on Twitter @smithap01

Cal for more information https://www.okanaganbc.com/ or view here Kelowna British Columbia homes and condos for sale

Kelowna- When Is The Best Time To Buy?

Kelowna- When Is The Best Time To Buy?

Home buyers are noticing quite a few more “SOLD” signs in the neighborhoods and wondering what is going on.

 

On one hand there are over 1650 homes listed for sale in Kelowna Real Estate but there are less than 445 single family  homes listed under $450,000 and the first time home buyer market is very active. The past could of weeks have seen many multiple offers with some buyers winning the house they had an offer on and some buyers having to return to the search hoping to get the next home that suits their needs. There have been 232 homes sold in this price range in the past 15 weeks. That means given the current buying trend Kelowna has less than 14 weeks of inventory of homes on the market that are priced under $450,000

 

In contrast there are 299 Kelowna homes on the market asking over $1 million and only 24 homes have sold since Jan 1. Kelowna has  3.5 years of supply of homes over $1 million for sale.

For people sitting on the fence and not able to decide if it is better to rent or buy  take a look at the  Rent VS Buy comparison Mark Price from Mark Price Mortgages  created. If you purchased now, in 5 years given a low 2% increase in the local real estate market, it would cost you $48.00 a month to be living in the house you purchased VS paying $1000.00 per month rent for the same home and having no equity at the end of 5 years.

Rent vs. Buy

1% Increase

2% Increase

Purchase Price

$250,000

$250,000

Downpayment

-$12,500

-$12,500

Family Income Required

$51,982

$51,982

( no other debts)
Term

5 years

5 years

Interest Rate

3.09%

3.09%

CHMC Premium

$6,531

$6,531

Mortgage

$244,031

$244,031

Monthly Payment (p & I )

$1,166

$1,166

Property Taxes

$120

$120

Total Monthly Payment

$1,286

$1,286

Monthly Rent

$1,000

$1,000

Increase In home Value

1%

2%

Amount owing after 5 years

$208,944

$208,944

Annual Increase in Home Value

$262,752

$276,020

Rental Payment over 5 years

$60,000

$60,000

(no increase in rent)
Mortgage Payment over 5 years

$69,970

$69,970

If you rented for 5 years you would have

-$60,000

$60,000

paid out: ( plus have no equity or security
of residence )
If you bought, after 5 years, you would have paid

$53,808

$67,076

out $69,670 in mortgage payments, minus the
value of your home, you would have equity of:
If you subtracted your mortgage payments, from

$264

$48

your equity, you would have spent, effectively in
rent per month if you owned your own home:

Please share this with anyone thinking of buying. If you are on the fence, it is time to get off! Call me for my “First Time Home Buyers Book

 

Realtor Andrew Smith
Living in Kelowna,
Andrew Smith
Royal LePage Kelowna
1-1890 Cooper Rd, Kelowna, BC V1Y 8B7
250-979-8066 or Toll Free 1-877-330-5884
Follow me on Twitter @smithap01

Cal for more information https://www.okanaganbc.com/ or view here Kelowna British Columbia homes for sale

Kelowna First Time Home Buyers

Kelowna First Time Home Buyers

Kelowna First Time Buyers made up 27% of the market in February and home ownership is one of the greatest dreams a young professional or family can have.  The thought of having your own place that you can customize to your heart’s content is appealing, and many hoKelowna home salesme owners are thrilled to stop handing rent money to a landlord. Once you’ve started to make the leap from renting to owning, you need to get prepared for your first time buying a home! Most home buyers need to obtain a mortgage, and 34% of Canadian families currently pay a mortgage. A mortgage is a loan that gives a lender security for a borrower repaying the loan. The mortgage is like a promise to repay the loan, and the house is a form of security toward you keeping that promise.

Kelowna First Time Home Buyer

 

Get Started with Mortgages

 

There are two mortgage types. The first is a conventional mortgage, and occurs when a home buyer has at least 20% of the house’s purchase price as a down payment. The down payment is typically accompanied by proof of two years of employment.  If you have a down payment and qualify for a conventional mortgage, you aren’t required to purchase default insurance. However, a conventional mortgage must not exceed 80% of the total purchase price or value of the home, or default insurance will be required.  It covers the life of the home, and is a one-time purchase. You’ll also be required to purchase the default insurance if you do not have a 20% down payment. This insurance serves to protect the lender if you default (fail to pay) on the mortgage.

Cost of buying a home

 

The second type is a high ratio mortgage. New home buyers in Kelowna must have a high ratio mortgage if their down payment is less than 20% of a home’s purchase price, or a loan for more than 80% of the home’s value. When ready to purchase a home, you can approach a reputable bank for a mortgage or a local mortgage broker.  Many banks offer pre-approved mortgages, so you know exactly what price range you can consider when shopping for your first home. The pre-approved mortgage will also come with an expected interest rate that is held for around 90 days after completion. You’ll have a good idea of how much your monthly payments will be, so you can figure our your finances accordingly. However, the pre-approval isn’t set in stone. Each property will need to be approved on a case-by-case basis for your mortgage. Your bank will let you know whether you can have an open mortgage or closed mortgage. An open mortgage lets you repay the principal amount at any time, without risk of penalty. If you want to pay off your mortgage fairly quickly, you might get an open mortgage. If you want a longer amount of time to pay your mortgage, you would probably do well with an closed mortgage. The interest rates are lower, and give you a longer length of time in which to pay off your mortgage.

 

If you’re confused on the best options for your home purchase, your lender will walk you through every thing you need to know about your individual financial situation. Finding out the amount you’re approved for, and the terms of your mortgage is your first important step on the journey to home ownership.

If you are considering buying your first condo or home please call me I would be happy to help you plan how to get started.

Realtor Andrew Smith
Living in Kelowna,
Andrew Smith
Royal LePage Kelowna
1-1890 Cooper Rd, Kelowna, BC V1Y 8B7
250-979-8066 or Toll Free 1-877-330-5884
Follow me on Twitter @smithap01

Cal for more information https://www.okanaganbc.com/ or view here Kelowna British Columbia homes

Buying My First Home In Kelowna BC

Buying My First Home In Kelowna BC

In 2012 my husband and I made the hard decision to relocate our young son and ourselves to the Canadian city of Kelowna. We wanted to raise our family in the beautiful B.C environment with the mountain backdrop. However making the move to B.C wasn’t exactly easy for us originally hoping to purchase an affordable home in Kelowna we were very disappointed to discover to find ourselves renting again for almost a year.

Despite the fact that we had our hearts set on a family home in the suburbs of Kelowna, we were not able to close a deal on a house in time for our big move. This is because the competitive Kelowna real estate market and our low budget price point weren’t doing us any favors. We lost two houses to higher offers because we didn’t have a lot of wiggle room in our price range. We thought that it would be possible to buy our first home in 2012, but without knowing much about the process we eventually gave up and rented an expensive condo in the city.

How To Buy A House in BC.

It wasn’t until last August when we went to see a financial advisor that we became fully aware of how much money we were wasting on rent every month. Our bank consultant at the time said to us Why haven’t you looked into to getting a mortgage? Immediately, we began to tell her our story about how we had gotten pre-approved by an alternative lender to buy a house back in the fall when we first made the move. Not being familiar with the local real estate market in the Okanagan and not having a good real estate agent working with us we had been unable to find a house within our price range and had been confused by the complexity of the fast paced first time home buying experience. The financial advisor wasn’t overly surprised to hear that we had been so unsuccessful in first attempt at buying a home. She shook her head, and explained to us that many young couples that come into her office tell a similar story about their experiences.

She went on to explain to us the average age of first time homebuyers was around 32, statistically 30% of these individuals felt overwhelmed by the home-buying process stating that the pre-approval and paperwork were often overly complicated and made the process more difficult to navigate. Furthermore, not working with an experience real estate agent often led to complex dealings and the unfortunate loss of potential purchase opportunities. She suggested that we speak to her realtor Andrew Smith, and get back out their shopping for a home.

Why You Should Buy Instead of Rent

Sick of paying over a one thousand dollars a month on rent, my husband and I took the bankers advice and began to once again start looking into buying a house. We called up Andrew Smith, and explained our situation; he agreed that it would be a good strategy to look at homes in the lower end of our budget so that we would have some space to negotiate if we needed too. Instead of wandering aimlessly through the process, he taught us about equity investment and how to get a mortgage on your first home. We’d been so clueless before, and had no idea what we actually were getting ourselves into; suddenly with the help of our Royal Le Page realtor things were becoming clearer. All this time we had been renting and paying someone else’s mortgage instead of building equity in our own home. We wasted our time because the real estate market scared us away too quickly. Once we began to work alongside a professional agent, their were no longer any roadblocks in finding a humble starter home so we could truly start our new life in the beautiful city of Kelowna.

I’ve started this blog because I want everyone to help other young families like mine succeed in buying their first home. I have nothing but good things to say about my Realtor Andrew Smith and the great service that he provided to my husband and I in our time of need. We didn’t want to be part of a statistic of young people who were afraid to jump in and buy a home of our very own. However if it hadn’t been for our Realtor and that friendly financial advisor at the bank we probably would still be throwing our money away renting from someone else.  Brandi & family

 

Realtor Andrew Smith
Living in Kelowna,
Andrew Smith
Royal LePage Kelowna
1-1890 Cooper Rd, Kelowna, BC V1Y 8B7
250-979-8066 or Toll Free 1-877-330-5884
Follow me on Twitter @smithap01

Cal for more information https://www.okanaganbc.com/ or view here lakefront homes for sale

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