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The questions you need to know… How are the penalties calculated to break my mortgage What are my Prepayment Privileges Is my mortgage Portable Can my mortgage be Assumed What are my Amortization options What is the Conversion Rate from VRM to a FIXED RATE Is this mortgage available on an Investment Property?
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“Understanding the Personalities of your Mortgage…the GOOD and the BAD”
DLC Geoff Lee Mortgage Group
“The questions you need to know…”
• How are the penalties calculated to break my mortgage• What are my Prepayment Privileges• Is my mortgage Portable• Can my mortgage be Assumed• What are my Amortization options• What is the Conversion Rate from VRM to a FIXED RATE• Is this mortgage available on an Investment Property?
“QUESTION…”What is the penalty to break my mortgage if I want to Upgrade, Refinance, or Sell?
The Good• 3 month interest penalty• The Interest Rate Differential• What is IRD?• How is the IRD calculated• Posted rate to Posted Rate• Contract Rate to Posted Rate• Contract Rate to Contract Rate• Contract Rate to Bond Yield
What is the penalty to break my mortgage if I want to Upgrade, Refinance, or Sell?
The Bad• 12 Month Principal and Interest• % of the Balance owing• You may be stuck with the rate the lender gives you
What you need to know• Up to 75% of borrowers break or re-negotiatetheir mortgage before maturity
“Question…”
What are my Prepayment Privileges?“How much extra you can put towards your mortgage principle – monthly/annually ”
The Good• Up to 20%• Monthly Payment• Anniversary/Balloon Payments• Throughout the Year
• Double Up Monthly Payments• Skip a payment• Access to Prepayment payments when/if
necessary
What are my Pre Payment Pvileges?
What are my Prepayment Privileges?
The Bad• 0-10%• No anniversary or lump sum payments
What you need to know• How much do you really need?• Stats say only 17% make lump sum
payments• 23% make monthly payments• Usually no more than 10% should be
needed
“Question…”
“Can I bring my mortgage with me w/o penalty and keep my Interest rate?”
The Good• Yes• Up to 90 days
Is my mortgage portable
“Question…”
The Bad…• NO you can’t• Some are YES but with restrictions• Must sell and buy your home within
30 days
Important note• Be aware of lending area• Especially if working with a
CREDIT UNION
Is my mortgage portable
“Question…”
Is my mortgage Assumable “If I am to sell my home can someone take over the remaining terms of mortgage?”
The GoodYES
The Bad NO
“Question…”How long can my Amortization be?
“How long it will take to pay off my mortgage at the contract rate….impacts debt servicing and monthly payment”
The Good• Up to 35 years• Pending on lender
The Bad• MAX 25 years
“Question…”
Does this product apply to an investment property?
The Good• YES
The Bad • NO
“Question…”
What will my rate be if I go from a Variable Rate Mortgage (VRM) to a FIXED rate?
The Good• Sharpest Discounted Rate
The Bad• Standard Posted Rate• Standard Discounted Rate
“Rates…Fixed and Variable”FIXED TERM1 year 2.742 year 2.693 year 2.894 year 3.245 year 3.296 year 3.757 year 3.9510 year 4.29
VARIABLE RATEPRIME less .55 – 2.45
LINE OF CREDITPRIME plus .5 – 3.5
“Lasting Quote….”
“Too many of us are not living our dreams because we are living in our fears….”
Les Brown
“GLM Group - Geoff Lee”Co founder and Director of the Imani Orphan Care Foundation
• www.imaniorphancare.comOver 15 years of real estate experience & Real Estate InvestorMember of
• Better Business Bureau• Chamber of Commerce• Mortgage Brokers Association of British Columbia• Canadian Association of Accredited Mortgage Professionals
Mortgage educator/key note speaker …• Wealthy Investment Network• Business Network International
Regularly sourced for mortgage insights by the …• Vancouver Sun• Mortgage Broker News
Ranked amongst the top 3% mortgage brokers in Canada by CMP magazine
Contact InformationGeoff Lee
www.geoffleemortgage.com
Twitter: @geofflee.ca
Linked In: http://ca.linkedin.com/in/geoffleemortgage/
Email: [email protected]
Phone: 1.778.552.3489
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