7 Nov

The Secret For Getting The BEST Pre-Approval Rate

Mortgage Tips

Posted by: Adam Sale

Banks Don’t Want You to Know This

Here’s a tip that can help save you hundreds, maybe even thousands of dollars.

Fixed mortgage rates tend to increase before the Bank of Canada increases their interest rates.

The reason for this is because fixed mortgage rates are determined by what happens in the bond market, and as we know, the bond market is determined by savvy investors.

These investors are also anticipating the Bank of Canada will raise interest rates on December 7th, so they are including this rate increase into their investment decisions.

If you want to get the best mortgage rate possible, submit a rate-hold before November 17th, when StatsCanada releases their inflation report.

If you have any questions, feel free to message me or give me a call. I’m happy to help, and let’s get an application started for you.

Adam Sale
778-215-4121
adamsale@dominionlending.ca

29 Jun

How to get the Best Mortgage at Renewal

Mortgage Tips

Posted by: Adam Sale

Did you know you can shop various lenders when you renew your mortgage?

You may be close to completing your first-term or finishing up your 2nd, 3rd or 4th term, but did you know that at your renewal period you can shop other lenders to find a more competitive offer?

The 120-days before your renewal date is when it really pays to do your due diligence and see what’s available on the market.

Did you know about 40% of homeowners take their banks first offer, but this isn’t necessarily the best option, because its in the 2nd, 3rd, and 4th terms where banks really make their money. You see, banks understand how their clients operate, they know that most clients would rather pay a higher interest rate then go through the process of switching lenders.

There are many industries that work this way, but none more popular than our favorite phone & internet companies. You’ve probably had this happen to you, you sign up for a 2-year internet package at a great rate and hell they probably threw in a free a tv too! But what happens after that 2-year honeymoon phase, well they jack up the rates. And now when you try to get them to lower the rate they say something like Sorry, we keep those specials for new clients only.

If only there were some sort of internet plan broker to help make switching from one provider to the next a breeze, well unfortunately, I can’t help you with your internet package, but what I can do is help make transitioning from one lender to the next simple, and easy.

When you transfer your mortgage from one lender to another lender you will receive that lenders’ lowest rates available, and often times  lenders will even provide a cash incentive for switching.

So, before you sign that renewal form, come talk to me and lets see if we can find you a better mortgage and some free cash.

I’m Adam Sale Mortgages, and I look forward to helping you grow your wealth!

14 Oct

25 Year Mortgage or 30 Year Mortgage?

Mortgage Tips

Posted by: Adam Sale

Is a 25-year mortgage, or a 30-year mortgage better?

Amortization is the total length of time it takes to pay off a mortgage. The most common mortgage lengths in Canada are 25-years and 30-years.

Deciding which mortgage length to choose will depend on your personal financial goals. A great rule-of-thumb is:

25-year mortgage for owner-occupied properties; 30-year mortgage for rental properties 

Why choose a 30-year mortgage for a rental property?

In Canada, interest being charged on a loan used for investment purposes is tax deductible. A 30-year mortgage on a rental property will create a sizeable tax deduction, and have lower monthly mortgage payments.

For example, a $400k mortgage amortized over 30-years with an interest rate at 2.39% create a tax deduction of approximately $9,000/yr, and the lower monthly mortgage payments will increase the annual cash-flow by roughly $2,340 when compared to a 25-year mortgage option.

For more information on which mortgage option makes sense for you or your clients, please contact me at:

Adam Sale Mortgages
adamjsale@gmail.com
778-215-4121

3 Oct

How to Purchase Property in the U.S.

Mortgage Tips

Posted by: Adam Sale

Living the Goodlife

Have you ever wondered about purchasing property south of the border to get away from our wet winters? Most of us have! Recently I spoke with an accountant who asked “what is the best way to receive financing for purchasing a property in the U.S?”

There are a couple financing options for U.S non-residents, each with their pros and cons.

Disclaimer: Dominion Lending Centres is licensed to arrange mortgages in Canada only.

Option 1: Refinancing Canadian Property

The easiest way to receive financing for a property is to refinance one’s property in Canada and deposit the new money into a bank account. Of course, everyone’s situation for purchasing a property in the U.S. is different. This scenario best applies to persons who own property, or size-able investments, in Canada.

Key benefits of purchasing a U.S property in this fashion

a. Deal with the U.S/Canada exchange rate once – at time of purchase. This allows the buyer more control when taking advantage of exchange rates when they are favorable.

b. Best possible rates, refinancing your Canadian property with a Canadian lender is not considered risky, so lenders will give you their best rates and mortgage payments are in Canadian dollars.
Pro tip: Refinance your property 3 months prior to purchasing your property to satisfy U. S’s anti-money laundering laws. Keep the new funds in a separate bank account and wait until the exchange is favourable, then shop for the best possible exchange rates on large sums of money.

For preferred rate Inquiries, contact Taylor Swaffield at the Vancouver Bullion Exchange taylorswaffield@vbce.ca

Option 2: Get a U.S. Mortgage in Canada

There are options in Canada through TD, BMO and RBC to receive a U.S mortgage. These big banks have ties in the U.S. and each one will lend in specific States. The mortgage process is similar to obtaining a mortgage in Canada; however, it is significantly longer. Expect closing to take approximately 45-60 days. The typical income documents are required to qualify for the mortgage, as well as credit bureau report and a home appraisal.

One thing to note, monthly mortgage payments are in U.S. funds. This makes borrower’s vulnerable to exchange rate fluctuations. Receiving a U.S mortgage may be advantageous for Canadians working in the U.S receiving U.S funds for payment, or for vacation rentals.

When performing any large transaction south of the border, speak with an accountant specialized in Canada/U.S. Taxation to ensure you remain compliant with IRS and CRA rules.

Bank Websites:
Bank of Montreal
Royal Bank of Canada
Toronto Dominion Bank

For more information on mortgage options please contact me at 778-215-4121, or adamsale@dominionlending.ca

Adam Sale
www.adamsale.ca
Vancouver Mortgage Broker
First Pacific Mortgage DLC