What is New!

My web site of course. I am very excited to announce the completion of www.yourmortgages.ca. I would like to thank the following people: Mike Tighe, Leigh McDonald and Bryan Maniotakis at Otis & Huckleberry for all their insight, direction and of course their creative style that was key.

I invite you to take a look and if you cannot find what you need or are looking for, call me. When this web site was designed, you were the main focus of the direction it took to its completion. It is simple to find information, informative to answer your questions and it needs to be a place that you will refer your co-workers to when they ask you questions about mortgages. It is a place that your clients will go to and get immediate attention. It is a place where you will go to find your mortgage solutions.

Get Pre-Approved before you Shop

We’ve said this on other occasions: the best way to start home shopping is by getting pre-approved for a mortgage. While most of us would prefer to start by looking at houses, it can set you up for disappointment. How can you really shop effectively if you don’t know what your budget will be? Getting pre-approved tells you what size of mortgage you can qualify for, and lets you start to do some productive searching.

Frankly, you may also find that you can qualify for a mortgage amount that you really don’t want or need. We’ve seen people who have qualified for up to 2 times their annual salary! While it’s nice to know that the lender trusts you to be able to handle that amount, do you feel able to handle that amount? If not, take some time to figure out payments and interest costs and such, and then reduce your house-shopping budget accordingly. (We did. When buying our last home, we decided the size of mortgage we wanted FIRST. Then we went house hunting. Our mortgage payments are easy for us to meet, and we haven’t had to give up our yearly vacations.)

The pre-approval process will give you a lot of information, when we ask the right questions. You’ll be able to get your own credit score, and see how that translates into a good or better interest rate. As a prospective buyer, you should go to a reputable broker [Steven Faux] who understands such things as credit, credit scores, mortgage funding and debt-to-income ratios, in order to get the best information possible. That lending professional [Steven Faux] can help you figure out very closely the interest rate your credit score entitles you to, how much you are likely to be able to borrow and how much cash you may need for a down payment and closing costs.

All this work up front can save you from some nasty surprises later. Another really good reason to secure financing before beginning your home search is you may find out you are qualified for special programs! This can help you to have more budget for your home than you would have expected, and also save you money. For instance, a high credit score can qualify you for low down-payment loans or even no down-payment loans. If you are short on cash, you might find that lower down-payment requirements allow you up to buy more house than you thought you could.

A final good reason to set up financing first: what if the home of your current dreams comes up on the market, and you aren’t prepared to make an offer? In such cases, you can lose a property to another buyer who is ready to make an offer.

Most Common Mistakes Homebuyers Make

You didn't do your Homework!

You need to have some knowledge on your side before you go house hunting, otherwise an unscrupulous person in the process can take you. There are many places to find good information (including this site www.yourmortgages.ca !) A little time spent becoming knowledgeable can save you a lot of heartache (and potentially money) later.

You were more focused on making a shrewd investment than buying the right house for you and your family.

Here’s one that’s easy to fall into. However, the bottom line is that you should be buying something to live in. The housing market is tough to anticipate, just like the stock market. If you buy to stay for a long time, you’ll win over the longer term.

You've forgotten to keep good location in mind.

Let’s face it; one of the most important things for you and your family is a good location. Your home should reflect your needs. However, no one needs to have a home on the busiest street or with a shopping center in your back yard. Pay attention to good access to services that you need, while also keeping in mind that you are likely to see a better return on your purchase with a good location.

You overlooked an inferior floor plan for an attractive exterior.

While you want your home to look good on the outside, the most important space is inside. You want a livable home that gives you the space and amenities that your family needs.

You overlooked how the house will function for your family.

Let’s take an example: you’ve purchased a home with a large formal dining room, but no other eating area, and you’ve got 2 children under the age of 5. Clearly, this house isn’t going to work for your family unless you have children that are much cleaner eaters than the average. Keep in mind how you really live. Would you be happier with an eat-in kitchen? Do you need a home office? Pick your home accordingly.

You didn't have your resale home inspected before you bought.

Oh, oh. What if you just got a lemon? In the same way that you should have a second-hand car checked over by a mechanic, you should have your “new to you” home inspected. You don’t want surprises when you are moving into a home. The cost of the inspection is a fraction of what a major repair could cost you.

You didn't check the builder's reputation when purchasing your new home.

The quality of your home is completely dependent on that builder. Get the wrong one and you can end up with serious problems. In our own file of builder problems is one woman who spent over 10 years trying to get a bad builder to fix all the problems in her home. Don’t lose time and money. Talk to people who have purchased from the same builder. Check on the Internet for consumer sites that deal with homebuilders. Speak with your local Better Business Bureau. A bad builder can be a very costly mistake.

You've lost out becuase you lost your patience.

Buying a house is a big decision. Spend all the time you need. Many people spend weeks and months researching the latest digital gadget they’ve fallen in love with, and want to buy a house in a week! If you jump into the market because of impatience, you can make a bad decision.

You're waiting for a better market, or interest rates.

While this can be a good strategy in some situations, if you can get into the market, it’s usually better to get in. Just buy within your means. As Warren Buffett, a well-known investment guru says; the rear view mirror is always clearer than the windshield. Don’t end up remorseful because you didn’t buy when you had the chance.

You decided not to buy at all.

Really? If you can afford a home and you don’t make the purchase, you’ll lose the benefit of building home equity and appreciation. If you can buy, do!

Total New Housing Starts

Province	August 2005	September 2005	October 2005
Newfoundland / Labrador	2,700	3,100	2,700
PEI	1,000	900	800
Nova Scotia	5,400	3,900	4,700
New Brunswick	4,000	4,100	5,400
Quebec	45,700	52,600	47,700
Ontario	63,500	70,900	60,300
Manitoba	5,900	4,500	5,200
Saskatchewan	4,000	3,700	3,000
Alberta	37,500	46,600	37,800
British Columbia	35,700	39,300	39,200
Canada	205,400	229,600	206,800

Steve's Rates

YourMortgages.ca Premium Rates
Mortgage Term	Steve's Rates	Bank Rates
Variable Rate	2.50%	5.00%
6 Month Closed	4.95%	5.55%
1 Year Closed	4.75%	5.75%
2 Year Closed	4.85%	5.90%
3 Year Closed	4.80%	6.00%
4 Year Closed	4.85%	6.15%
5 Year Closed	4.89%	6.30%
7 Year Closed	4.89%	6.95%
10 Year Closed	5.10%	7.40%
15 Year Closed	5.38%	n/a
18 Year Closed	5.45%	n/a
25 Year Closed	5.59%	n/a

Rates are subject to constant change, for the best rates call 667.9816.

Resources

Business Supporting Business — Thank You:

Insurance
Canyon Insurance covers all your needs, ask for harry Mason
hmason@canyoninsurance.ca

Musician
claytoni@telus.net

Senotrini Spa & Wellness
www.scentorinispa.com

The Gift Designers
www.thegiftdesigners.com

Time Business Machines
wflanagan@timebusiness.com

Two Amigos Moving
www.twoamigos.com

Friends Supporting Friends — Thank You:

Evan William's Group
www.evanwilliamsgroup.com

Otis & Huckleberry
www.otishuck.com

Contact

At Prolink Mortgage Inc., I have over 30 lending financial mortgage institutions in Canada. With Steve Faux sourcing the best rates and the best products to suit your needs!

Direct Line — 403.667.9816

Direct Fax — 403.509.1007

Email — steve@yourmortgages.ca