Decorating on a budget doesn’t mean that your home will be less comfortable or attractive than one with lots of show pieces.  It just means that you’ll have to “roll up your sleeves” to complete certain tasks and be a bit more creative in your decorating approach.

Here are some ideas that can help you add comfort and beauty to any space without breaking the bank!

Paint Those Walls – Without a doubt, painting a room is one of your best and most versatile design tools. Warm colors (red, yellow, and orange) make a room cheery and energetic.  Cool colors (blue, green, and violet) convey a cozy, more laid back feel.

Lower The Lights – One of the biggest mistakes that people make is to only use one type of lighting in a room. In doing so the choice is usually “general” lighting which illuminates the whole room. It’s okay to have general lighting available, but only use it when necessary. The good news is that there are plenty of inexpensive lighting solutions if you’re decorating on a budget.

Hang Prints Or Mirrors – Prints and other artwork add character to your home. Just viewing a piece that you enjoy can brighten your day. Mirrors are popular because they serve two purposes. First they come in many decorative frames to suit any decorating style. Second, they can make a room appear larger. When you hang a mirror, try to position it so that it reflects an attractive view, such a garden or a dramatic architectural element.

Decorate With Plants – The natural beauty of plants will enliven any room. Check with florists, nurseries, and lawn and garden shops. Also, check our local craft shop for inexpensive and low maintenance silk plants.

Display Keepsakes In Groups – Perhaps you have collectibles or keepsakes that are similar perhaps in color, theme, or material (e.g., porcelain). If so, don’t sprinkle them around the room. Instead, display them in groups of three’s or five’s. This captivates the eye and adds drama to a room.

Try The Unexpected – When you’re decorating on a budget, you have to stretch your creativity. Just about any object can be used for a purpose other than for which it was originally intended.  For example, if your glass coffee table has became outdated.  Instead of replacing it entirely, keep the glass top and placed two large, earthy pots beneath it. The effect is surprising, wonderful, and unique. Maybe that incomplete set of three colorful, rustic dinner plates you saw might have added texture and color to your walls if they were displayed together.

If you are not sure about your own style and taste, start collecting magazine pages with pictures of what you like. In the end, your home should feel comfortable and be filled with things you love…

Purchasers will qualify as a first-time new home buyer if:

• You purchase or build an eligible new home located in B.C.

• You, or for couples, you and your spouse or common law partner, have never previously owned a primary residence

• You file a 2011 B.C. resident personal income tax return, or if you move to B.C. after December 31, 2011, you file a 2012 B.C. resident personal income tax return (you will not be eligible for the bonus if you move to B.C. after December 31, 2012)

• You are eligible for the B.C. HST New Housing Rebate

• You intend to live in the home as your primary residence

Here is a link to the B.C. Home Buyers Fact Sheet:

http://www.bcbudget.gov.bc.ca/2012/homebuyers/2012_First_Time_Home_Buyers_Fact_Sheet.pdf

If you have any questions on this program or any of the other home buyer grants and rebates, please give me a call.

April Dunn is a Mortgage Broker who has been assisting clients to purchase, refinance or renew their mortgages for over 15 years. April is the Managing Broker of Mortgage Alliance Homeline Mortgage, an independent franchise of the Mortgage Alliance network. April provides a full range of residential and commercial mortgage financing for clients all over the province of British Columbia. April can be reached at 250-826-3543 or april@homelinecanada.com

About 80% of Canadians visit their doctor at least once a year to help ensure they remain physically fit but far less are checking their financial fitness annually.

Life changes, families grow, job’s move, retirement objectives shift. There are any number of reasons why your mortgage and possibly your entire financial picture should be evaluated from year to year. Maybe there are no changes needed but if there are it’s better to identify them early.

The mortgage that you signed up for a few years ago may no longer be the best fit for you. Doing a financial check-up is a very smart thing to do annually. Many often just wait for the renewal letter before they look at their mortgage and then go back to their current lender without considering whether that mortgage meets their current needs.

There are so many things that a mortgage can do for you. It can help you become more tax efficient, build wealth for retirement, renovate your home, consolidate high interest credit card debt or perhaps invest in a business and so much more.

Don’t wait for your mortgage to come up for renewal and don’t wait until after you have made a major change in your personal situation. By reviewing annually you will ensure you stay financially fit.

Give me a call today at 250-826-3543 so we can schedule your check-up.

April Dunn is a Mortgage Broker who has been assisting clients to purchase, refinance or renew their mortgages for over 15 years. April is the Managing Broker of Mortgage Alliance Homeline Mortgage, an independent franchise of the Mortgage Alliance network. April provides a full range of residential and commercial mortgage financing for clients all over the province of British Columbia. April can be reached at 250-826-3543 or april@homelinecanada.com

Many factors can affect the interest rate you get on your mortgage including: the type and location of your property, your credit history, the size of your down payment, the mortgage amount, and your employment status. Any of these factors can significantly impact your interest rate.

While understanding that these factors can ultimately influence your rate, it’s also important to understand that the way a lender chooses to advertise a mortgage is what gives the illusion of differentiation.

You can avoid much of the headache associated with home financing by finding a Mortgage Broker who is able to help you clarify your specific needs and match available products to those needs at a competitive price in a timely and professional manner.

Mortgage Brokers have easy access to hundreds of mortgage options available through dozens of sources. This will allow them to easily shop for the most ideal options for you and your property.

How do you find such a great source? A good test is to go ahead and call a few banks and Mortgage Brokers. Ask the typical question asked by inexperienced buyers: “What’s your best rate for a 5 year fixed rate mortgage?” If you get an immediate rate quote, hang up! If you get someone willing to help you determine your specific needs and identify competively priced options, you’re on your way to a good mortgage experience.

Better yet, save yourself some time and hassle and call me today! Or visit my website at www.aprildunn.com 

April Dunn is a Mortgage Broker who has been assisting clients to purchase, refinance or renew their mortgages for over 15 years. April is the Managing Broker of Mortgage Alliance Homeline Mortgage, an independent franchise of the Mortgage Alliance network. April provides a full range of residential and commercial mortgage financing for clients all over the province of British Columbia. April can be reached at 250-826-3543 or april@homelinecanada.com 

One thing that many Realtors® have learned is the importance of having a team of professionals to facilitate a smooth transaction for their sellers. Having a Mortgage Broker on the team can make available the following services to you as a home seller and all for FREE: 

• Mortgage Brokers can screen all potential buyers. Today’s mortgage world is a rapidly changing environment with programs and requirements changing regularly. A good Mortgage Broker is up-to-date on all of the current guidelines and can find the best solutions for clients. As a seller you need to know that when you accept an offer, the buyer will actually be able to close. 
• Financing is a very important aspect of getting a home sold. Mortgage Brokers can assist with marketing flyers, legal and appraisal fees, and unique mortgage strategies to differentiate your home. A good Mortgage Broker has the ability to help increase the number of people for whom your home might be a fit. More prospects equal higher sales prices. 
• Mortgage Brokers will also ensure that you are able to clear the title of your home should it sell. Your property value may have declined since you originally purchased your property or you financed with either 100% financing or perhaps a 40 year amortization. Potentially there may not be sufficient proceeds from the sale of your property to pay the penalties or fees for an early payout of your mortgage. This is something you should know before you list your home. A Mortgage Broker can assist you with calculating any penalties and recommending the right strategies to sell your home with no last minute surprises to ensure that you can provide a clear title to the buyer. 
• And finally, your Mortgage Broker knows that most home sellers become home buyers. They will assist you with a pre-approval so you can move into your next home with ease. 

Both your Realtor® and Mortgage Broker on your team are committed to the highest level of advice and integrity. Reach out to them for any questions you may have.

April Dunn is a Mortgage Broker who has been assisting clients to purchase, refinance or renew their mortgages for over 15 years. April is the Managing Broker of Mortgage Alliance Homeline Mortgage, an independent franchise of the Mortgage Alliance network. April provides a full range of residential and commercial mortgage financing for clients all over the province of British Columbia. April can be reached at 250-826-3543 or april@homelinecanada.com  

(adapted from The KCM Blog)

Bridge financing assists when the purchase of the new property completes before the sale of the current property and funds are required to cover the purchase of the new home. It is short term financing solution that must be paid off from the sale proceeds.

It is important note is that not all lenders offer bridge financing and if they do the expectation is that they will be the lender that provides the final mortgage financing. If you think that Bridge financing might be required it is important to have that discussion with your Mortgage broker well in advance.

There must also be a firm sale on the current property for Bridge Financing but there are other options available should there not be a firm sale on the property so again please discuss with a Mortgage broker.

There will also be additional legal fees and possibly a higher interest rate for the Bridge Financing and most lenders will only carry it for 15 to 90 days depending on the lender’s guidelines.

So plan ahead and if you have any questions regarding Bridge Financing, please contact me and I will be happy to assist.

But here is a quick story for you.

A past client of mine recently referred a friend, who lives inVancouver, to me. They wanted to purchase a condo here in Kelowna. They had met with their bank’s mortgage specialist and explained that they were interested in purchasing an investment property. They were advised that they would require a minimum 20% down payment due to the new rules on investment property financing and to come back when they had one. The problem was that they didn’t have the means to come up with the extra funds required.

After speaking with them they shared with me that they were actually purchasing a small condo for their son to live in while he was attending UBCO here for the next 3 years. It made more sense to them to purchase rather than to pay the rent over an extended period of time but they were disappointed that they needed a 20% down payment.

I let them know that there is a program available whereby you can purchase an investment property, with less than 20% down, as long as a family member will be living in the home.

So here is a tip for you . . .

When you get a “no” for an answer, seek a second opinion. As a Mortgage Broker I have many programs available for clients that may not fit at a bank.

April

PS: Who’s the next person you know you may be thinking of purchasing an investment property? Be sure to give me a call at 250-826-3543 so they learn about “all” of the options available.

Today’s lifestyles are very busy and there are more reasons than ever to consider purchasing a Second Home. 

Whether it is the dream of a summer cottage, a place for your children to live while they attend university, a condo in the city to avoid the hectic commute or to help buy a home for your elderly parents who are on a fixed income. The CMHC Second Home Program makes it now easier than ever. 

Up to 95% financing is available for owner occupied properties all acrossCanada. (This program is not available for investment properties.) There are a few conditions here: either the borrower must occupy the property for at least some part of the year, or a family member must occupy the property on a rent-free basis. The property must be winterized, and be accessible for year-round occupancy. 

A quick note here: the program can’t be used to purchase time-shares or similar rental pools. 

There are many financing options available and speaking with a mortgage broker who has access to a wide range of lenders is the best option. The requirements for mortgages on second homes can vary greatly from lender to lender and a mortgage broker can make you aware of all of the choices. You’ll want the best possible financing for your new real estate investment. 

Instead of waiting many years to save enough to purchase a second home, you may be able to access the equity in your principal residence to finance a Second Home. This involves a cash-out refinance of your property and there are many options available. Another option may be a second mortgage on your current property. 

With our current interest rates at all time historical lows, now is the time to get serious about your dream to own a Second Home. Let’s work on your mortgage plan together.

I know that there are many questions on everyone’s minds about whether to choose a fixed or variable rate mortgage.

The points made in the article clearly show, the stability of the fixed rate might be something to think about.

August 26th 2011

The age old question facing consumers, do I take a fixed rate or variable rate……and a similar dilemma facing mortgage brokers as their clients ask them for advice on which option to take. We all know it depends on the client’s appetite for risk, affordability, cash flow stability, etc. however statistics have shown that taking a short term or variable rate has predominantly, but not always, been cheaper than take a longer fixed rate mortgage.

We maybe in or coming to an interest rate environment when taking a fixed rate or a hybrid mortgage (50/50) may actually be cheaper than staying in a variable rate. Why you ask…..let’s look at the facts as to why this maybe a good time to take a fixed rate or hybrid mortgage.

1. 5 year fixed rates are at the lowest levels in history, we have never been this low…..3.39% and 3.49% 5 year fixed rates are available through many lenders.

2. The gap between a prime – .50% (2.50%) and 5 year fixed rate (3.49%) is 0.99% and (in some cases even lower ), this is down significantly from 3 to 4 months ago when the gap between a 5 year ARM and 5 year fixed rate was as high as 2.00%

3. We have just seen major Bank’s increase ARM rates by 20 bps as liquidity costs and funding costs are starting to take their toll and forcing the increase in ARM rates, thus making the ARM to Fixed rate spread or gap even narrower and will this trend continue

4. You can’t predict when to time a conversion from ARM to Fixed rate, especially in a volatile market. Fixed rates have a tendency to move ahead of variable rates….when variable rates begin to rise the fixed rate has already gone up and if you convert you maybe converting at a much higher fixed rate than today’s rates.

5. Watch for what I refer to as the “Fixed Rate Bubble”. We have seen a large amount of mortgages over the last two years take a variable rate versus fixed rate, including renewal clients. I estimate that as much as $350 billion in mortgages outstanding are in variable rate today. Probably the highest levels we have seen in the Canadian mortgage market. If we see a large increase or numerous simultaneous increases in prime rate over a short period of time AND we experience a mass conversion from variable rate to fixed rate, what will happen to fixed rates? If demand for fixed rate outstrips supply of fixed rate funding, then fixed rates will have nowhere to go but up. We have seen mass conversions in the past, however, the potential magnitude in volume that exists today has never been experienced before and we could be entering into new territory.

No position is complete without looking at the counter arguments’, in other words why a client should consider a variable rate versus fixed rate mortgage. Once again let’s look at the facts.

1. Bank of Canada has indicated it is not looking at raising the overnight anytime soon or at least will hold off until such time as it sees the economy improving

2. There is no indication that inflation is increasing, therefore supports point 1 above.

3. U.S. has no plans to increase rates for the next two years making it more difficult for Canada to raise rates unless the Canadian economy is growing in spite of the U.S. being sluggish

4. Canada is becoming a safe haven for investors’ thus larger demand for Canadian bonds. This demand is keeping bond yields down thus lower fixed rates on mortgages.

Both positions have merit and no one has a crystal ball and if we did we wouldn’t be working we would be sunning ourselves on an island paradise we just purchased with the massive amount of money we made playing the markets…….well back to reality.

If we continue to see the gap between fixed rate and ARM rates shrink then the risks of taking a variable rate versus fixed rate increases substantially. The risk being that ARM rates could increase higher than 1 % over the next 18 months to 24 months, therefore over the course of a 5 year term the fixed rate maybe less costly than the ARM rate. Once the gap between ARM and fixed gets to 1% or less, I believe the smart money would go to fixed rate versus ARM. If the gap between ARM rate and fixed rate is between 1% and 1.50% then a 50/50 mortgage maybe the best bet. If the gap between ARM and fixed rate is in the 1.50% to 2.00% range then ARM rate maybe the way to go. Based on the present volatile market conditions it is hard to predict or say what will happen, this volatility, is the biggest wild card and probably the main reason I personally would be taking a fixed rate or 50/50 versus an ARM, a bird in the hand (fixed rate) is better than two in the bush (ARM rate).

Fixed Rate to ARM Gap *              Primary Product Selection
less than 1.00%                                 5 year fixed rate
1.00% to 1.50%                                 50/50
1.51% or higher                                 5 Year ARM

* difference in rate between a 5 year fixed rate and 5 year ARM rate

John Bordignon
EVP, Strategic Development, Paradigm Quest Inc.

Your Beacon Score, which is shown on your Equifax credit report, indicates to a mortgage lender the probability of whether you will successfully make your mortgage payments on time. Beacon scores can range from a low of 300 up to a high of 900 which is the highest possible score. A good credit score would be in the mid to upper 600’s and a credit score below 620 could prevent you from obtaining a mortgage a bank.

So what makes up your credit score?

• 35% is for late payments, bankruptcies, collections and judgments
• 30% is for current debts
• 15% is for how long accounts have been open and established
• 10% is for the type of credit, such as credit cards or personal loans
• 10% is for new credit enquiries

Here are some examples of the common mistakes that homeowners or potential homeowners make that can result in a poor credit rating.

• Chronic late payments. Do not ignore the small stuff. No matter what the size all bills must be paid on time.
• Maxing out your credit cards. You should not exceed over 50% of the limit on your card. Even if you pay off the balance every month, it will still negatively affect your Beacon Score. Spread your spending out over a few cards.
• Do not over apply to creditors and lenders. Don’t fill out applications at car dealerships if you are shopping for a car. Don’t fill out the credit card application at the booth in the mall or the airport. Every time you fill in an application they will check your credit.
• Mortgage payments do not report on your credit so even if you are making your mortgage payments on time but sliding on your other credit, this negatively affects your credit score.

A great tip for managing your credit is to pull your own credit report from Equifax at least a couple of times a year. It is the responsibility of a consumer to correct any errors and it takes a long time for reporting to be amended should there by an error. Equifax is not there to help you and they are extremely difficult to get in touch with so make sure everything is in order on a regular basis. You must be diligent.

If you need to repair your credit the best tactic for improving your credit score is to consolidate debt. Taking out a short term second mortgage to pay off all debt will basically wipe the credit clean so it is positive. By allowing two or three months for the reporting to go through to the credit bureau a few times, the report will start to show a higher credit score and you will now be considered for more competitive interest rates at an ‘A’ lender.

There are some easy steps that can be taken to improve your overall financial picture and ensure that you are getting the best terms and rates whether you are renewing your current mortgage or looking to purchase your first home.

Moving from bruised credit to “A” credit simply takes time and sound advice. A great rate is within reach. Give me a call if you would like some advice and assistance to improve your credit score.